Grove Inc (NASDAQ:GRVI) looks to acquire a pet care company, offering grooming and nutrition products through multiple sales channels, including business to business, eCommerce, and Amazon.com Inc (NASDAQ:AMZN).
What Happened: Grove looks to expand its product offerings through acquisitions made by its brand aggregation division, Upexi. The financial terms of the deal were not disclosed.
CEO Allan Marshall said, “We’ve been looking to tap into the international pet care industry with our own direct-to-consumer brands. Our patience in finding the best-fitting acquisitions through our Amazon brand aggregator division seems to be paying off, and we hope to close this deal in the current quarter.”
Why It Matters: The deal could cement a foothold into the international pet care market, likely worth $200 billion by 2025, growing at a 4.9% CAGR.
The pet care company is currently catering to the U.S., Canada, and Australian markets, which will give Upexi an international presence in the industry.
The transaction would be cash flow positive and adds potential revenue growth through additional sales channels and pet care products.
Price Action: GRVI shares closed lower by 6.8% at $5.07 on Wednesday.
