PetMeds, the well-known online pet pharmacy store, is set to acquire PetCareRx in a move that will consolidate the company’s influence in the pet care and wellness market, an industry with a market size of $46.1 billion as of 2021.
Online pharmacy stores that sell medication for pets have been on the rise for a while now, and this acquisition will put PetMeds as one of the most prominent players in the group.
PetCareRx, the company that’s being acquired, has been in the online pet pharmacy and pet wellness business for over 20 years. The $36 million acquisition, expected to close early this year, will increase the range of products and services offered by PetMeds, making them one of the largest pet health brands.
A Little About PetMeds and PetCareRx
PetMeds is one of the oldest players in the pet pharmacy scene. They started way back in 1996 as a phone order and online service that delivered pet medications across the USA.
Over time, the company quickly increased in scale and size and, within ten years, reached number 4 on Forbes magazine’s 200 best small business companies in 2006.
PetMed has a loyal and core customer base of 2 million and made a name for itself as a premier pet pharmacy company.
PetCareRx, like PetMeds, is also an online pet pharmacy store that sells medications. However, it also sells other pet-related products, such as pet foods, treats, toys, and more. The company was founded in 1998, just a few years after PetMeds.
In addition to being a platform for products, PetCareRx also contains expert-written resources such as wellness advice, medication guides, and breed guides.
Implications of the PetCareRx Acquisition
PetMeds seems to have decided to maintain the unique brand identities that both companies have created. Customers can access and purchase products from both e-commerce websites even after the deal finalizes early this year.
As a result of the Acquisition, PetMed will gain an additional 200,000 customers and $40 million in additional annual revenue.
The company hopes that new efforts to broaden its presence in the field will put them on the map as an expert source that people turn to when they want to learn about pet health and wellness.
PetMeds CEO Matt Hullet believes the company will see rapid growth and an increase in sales due to the acquisition.
Jeanette Loeb, CEO of PetCareRx, also looks forward to working with PetMeds and stated that joining forces would create “a more holistic pet wellness experience” for parents across the US.
The Rise of PetMeds
The Acquisition of PetCareRx didn’t happen in isolation. Quite recently, PetMeds successfully partnered with Vetster. A telehealth company that allows people to connect with a vet online and have a consultation over a video call.
The partnership with Vetster and the recent acquisition of PetCareRx tell us that PetMeds is on a mission to become an industry leader.
CEO Matt Hullet is one of the reasons for this sudden boost in company activity.
Before he became the CEO of PetMeds, Hullet was responsible for revolutionizing Rosetta Stone, the language learning ed-tech company that was fading from relevance. He managed to revitalize the company through a push for modernization and digitalization.
With what many would call “visionary leadership,” it will be interesting to see the areas in that PetMeds branches out in the future.
Significant deals like the Acquisition of PetCareRx by PetMeds are a sign of changing times.
Greater access to online pet health products is set to bring several benefits to pets and their owners, who are now enjoying easy access to the products their pets need. All without needing to leave home.
The rise of online pet pharmacies and telehealth has made it easier for those living in remote areas or those with mobility issues to care for their pets.
Online pharmacies like PetMeds and PetCareRx often offer their products at a lower cost than brick-and-mortar stores, making them more accessible to pet owners on a budget. They also provide access to veterinarians or other experts who can advise and guide on the best products for a pet’s specific needs.
All these factors end up giving pet owners across the US and the world peace of mind regarding their pets’ health.