EXCLUSIVE: Grove's Upexi Scoops LuckyTail Pet Care Company For Undisclosed Terms
Grove, Inc's (NASDAQ:GRVI) Upexi unit finalized the acquisition of the international pet care brand, LuckyTail, Inc.
What Happened? Lucky Tail has a strong presence on Amazon.com Inc (NASDAQ:AMZN) and its eCommerce store, offering grooming and nutritional products. Its products are also available on Chewy, Inc (NYSE: CHWY) Chewy.com.
The transaction was an all-cash transaction with earnout payments subject to growth and performance. The financial terms of the transaction remain undisclosed.
Why Does It Matter? According to Fortune Business insights, the global pet care market was $207.90 billion in 2020.
The global impact of COVID-19 has been unprecedented and staggering, with pet care products witnessing a positive demand shock across all regions amid the pandemic.
LuckyTail currently sells products domestically in the U.S. and internationally in Canadian and Australian markets.
Grove plans to expand into new product lines in the U.S. and international markets this year and ramp up marketing and advertising as quickly as possible.
The deal diversifies Grove's portfolio and creates a strong foothold in the pet care industry. With $10 million in past sales, LuckyTail will be accretive to top-line growth and EBITDA for Upexi.
CEO Allan Marshall commented, "The all-cash acquisition of a great brand in a 200+ billion-dollar industry is another step towards our goal of accelerated growth in 2023 and beyond. Our direct-to-consumer business continues to fuel our growth, and the completed acquisition of LuckyTail puts us in a great position to tap into an exciting, high-growth mainstream market. We anticipate our name and symbol change to happen this week, and adding another quality brand to our portfolio is a great way to further our brand aggregation strategy."
Price Action: GRVI shares closed higher by 0.95% at $5.29 on Monday.
