Emerge Commerce Ltd., the owner of various subscription and marketplace eCommerce sites ranging from pet products, meat and groceries to outdoor gear and golf, has purchased WholesalePet.com for $25 million, according to a Tuesday (Nov. 16) press release.
The acquisition is comprised of $12 million in cash at the close of the transaction, $2 million in Emerge common shares, $2 million in deferred consideration payable over two years and contingent earn-out of up to $9 million based on minimum growth targets over the two-year period, per the announcement.
Founded in 2001, WholesalePet.com is a B2B eCommerce marketplace, connecting more than 8,000 independent retail locations with more than 400 independent pet vendors, according to the announcement.
“With an impressive 20-year track record of steady organic revenue growth, profitability, and cash flows, WholesalePet.com will fit perfectly in the EMERGE ecosystem,” said Emerge Founder and CEO Ghassan Halazon. “The business has impeccable net revenue retention and requires minimal marketing spend, with a merchant network that is now 8,000+ strong. This acquisition marks our first foray into both the sticky B2B e-commerce space, as well as the pets vertical, one of the fastest-growing segments in the e-commerce sector.”
The Richmond, Va.-headquartered eCommerce site has generated $40 million in gross merchandise sales and $3.7 million in revenues in the 12 months that ended on Sept. 30, according to the press release.
This is the seventh acquisition in North America for Canada-based Emerge, and its third acquisition since becoming publicly listed on the TSX Venture Exchange in December 2020, according to the announcement.
In addition to WholesalePet.com’s revenue growth, other pet-centric eCommerce companies are seeing surging increases in pet products. Chewy, an online retailer of pet food and pet-related products, saw an increase of 4.7 million new customers during an earlier quarter this year. Its net sales topped $2 billion for the first quarter of 2021.
See also: The Rise Of eCommerce Platforms For Pets, Apparel
PetSmart meanwhile, which launched a buy now, pay later (BNPL) program with AfterPay earlier this year, in September debuted an online pharmacy.
Related: PetSmart Debuts Online Pharmacy
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