Analysis: Chewy’s latest equine deal puts the spotlight on a growing market

Chewy took the market by surprise when it announced the acquisition of SmartEquine, an American provider of equine health, from animal-health technology and services company Covetrus at the end of October. 

In the announcement, the online pet retailer said that the newly acquired provider of equine health products would strengthen its position as “a leader in the equine category and accelerate the company’s expansion into higher-margin health and wellness verticals.”

According to Chewy, SmartEquine has “proprietary subscription-based supplement programs, personalized nutrition plans and a broad portfolio of tack, gear and therapeutic products” for horses.

Underserved segment?

By acquiring the company, the retailer aimed to gain SmartEquine’s premium product portfolio to increase its exposure to the “high-margin equine supplement segment.”

Chewy also highlighted the opportunity to increase the wallet share of “a passionate and underserved customer segment.”

Investors welcomed the news, as Chewy’s shares rose 2.6% on the acquisition day. However, the retailer was not the only one who saw the potential of the segment. 

Central bets on equine growth

When releasing earnings for fiscal year (FY) 2025 in November, American retailer Central Garden & Pet praised its equine performance, despite a slight dip in net sales for the pet segment.

Company CFO Brad Smith told investors that Central’s equine portfolio posted “strong growth.”

According to Smith, a Farnam product is among the promising launches the company is counting on for the next year: “a next-generation EPA-approved [Environmental Protection Agency] formula that delivers long-lasting and highly effective fly control, bringing advanced performance and care to horse owners,” Smith says.

The CFO also states that Central made “incremental investment” in the horse brand during the quarter, which “ended up paying off quite well, where we took several share points in equine.”

Central rebranded Farnam earlier in the year, a horse care brand in its portfolio that offers supplements, grooming and deworming products, among others. 

The redesign investment aims to give the brand greater market exposure, enhancing “consumer recognition and distinction in the equine care category,” Central says, aiming to fight for “category distinction” and “stand out in an increasingly competitive industry.” 

M&As in the field 

Beyond pet retail, the equine sector also experienced notable movement in the science and care fields this year. In November, bioscience and genetic engineering firm Colossal Biosciences purchased Viagen Pets and Equine, a company known for cloning and advanced reproductive services. 

Colossal states that the deal supports its mission to protect endangered species. “Their application of these critical and proprietary technologies to endangered species conservation makes them an invaluable partner in advancing our global de-extinction and species preservation mission,” says Ben Lamm, the company’s Founder and CEO. 

Viagen, which extended its expertise into equine reproductive techniques in 2022, offers an advanced reproductive technique called Intracytoplasmic Sperm Injection (ICSI). 

Another deal in the scientific arena took place in April, when Creative Science, a manufacturer of pet and animal health products, acquired Astaria Global, a company focused on equine technology for inflammatory conditions and pain relief. 

Global expansion

In July, the Equine Care Group, a specialist in horse medicine, entered into a partnership with private investment company CNP (Compagnie Nationale à Portefeuille) to accelerate its global expansion. 

The company says the partnership will speed up ECG’s global growth by uniting veterinarians and equine specialists. It also intends to build hospitals in underserved areas and invest in improved diagnostics, digital platforms and future-ready medical technology.

The Equine Care Group, based in Belgium, has launched and acquired multiple clinics across Europe over the past four years and now wants to expand into North America, South America, Australia and the Middle East.