First acquisition of 2024: Swedencare takes over US pet treat business Riley’s Organics
The deal, closed by North American subsidiary Pet MD Brands, includes a potential rollout of the brand internationally.
Swedencare’s subsidiary business, Pet MD Brands, has taken over treat and pet care company Riley’s Organics for $7.5 million (€6.86M).
The deal will allow the Swedish pet care firm to enter “the fast-growing organic treat market in North America.”
“Pet parents have made organic pet treats one of the fastest growth categories and entering this category will allow Swedencare to utilize the Pet MD Brands team and technology,” says Brian Nugent, Chief Commercial Officer (CCO) of Swedencare North America.
Nugent pointed out that Swedencare may expand the brand and its range internationally “through other Swedencare subsidiaries.”
The details
The transaction will be completed in 2 steps: 30% of the acquisition was in the third quarter of 2023, with an option to buy the remaining 70% in the first half of 2024.
The company said it successfully tested out the sale of Riley’s through Pet MD’s Amazon channel in 2023. The sales of the products contributed to over $2 million (€1.8M) of Riley’s sales growth via this channel.
More about Riley’s Organics
Riley’s Organics is headquartered in Saint Louis, Missouri. The company, founded in 2012 by Grant Weber, sells its products in-store and online across different US states.
The company brought in an estimated $3.2 million (€2.9M) in net revenue from January to December 2023.
In addition to treats, Riley’s Organics also sells pet supplements and ear care treatments.
Swedencare acquired premium pet supplement company NaturVet in 2022.
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