PetIQ Acquires VIP Petcare



PetIQ, Inc., a leading pet medication and wellness company, has acquired Community Veterinary Clinics, LLC—better known as VIP Petcare—a leading operator and provider of nationwide veterinary clinics and veterinarian services within major U.S. retailers. 

VIP Petcare will now operate as a wholly-owned subsidiary of PetIQ. 

“We are excited to take this tremendous step forward to build upon our existing veterinarian products growth strategy with the acquisition of VIP and its national footprint in the veterinarian services and products industry to create a larger and more diversified pet health and wellness company,” said Cord Christensen, PetIQ’s chairman and CEO.  “We are pleased to welcome Will Santana to our Board of Directors and our senior executive team, and the entire VIP team to the PetIQ family, and look forward to significantly expanding our addressable market, further diversifying and strengthening our national retail customer base to further fuel our continued sales and profit growth.”

As part of the transaction, PetIQ paid $100 million in cash, $30 million of promissory notes issued to VIP Petcare Holdings, Inc. and approximately $90 million in equity interests. Of the $30 million in promissory notes paid to the Seller, $20 million is payable contingent upon the achievement of certain performance-based financial targets over the next two calendar years. PetIQ financed the cash portion of this transaction with $25 million of existing cash on hand and $75 million of new debt with financing from East West Bank and Ares Capital Management LLC.

Jefferies LLC served as financial advisor and Winston & Strawn LLP served as legal counsel to PetIQ. TM Capital Corp. served as financial advisor and Carle Mackie Power & Ross LLP served as legal counsel to VIP.


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