Pet-food group Swedencare has entered the North America organic pet-nutrition category through the acquisition of US-based pet-treats company Riley’s.
The Swedish company purchased Riley’s through its subsidiary Pet MD Brands for a fee of Skr78.4m ($7.5m).
The deal follows an initial joint test launch of Riley’s products which took place on Pet MD’s Amazon channel beginning in January 2023, which resulted “in over $2m of Riley’s sales growth in this channel”.
Riley’s is headquartered in St Louis, Missouri and produces organic dog treats, including single-ingredient formulas in jerky and baked biscuit formats. The company also offers nutritional supplements targeting skin and coat health, ear care, liver support and more.
The business’ net revenue was approximately $3.2m in the year ending December 2023.
Brian Nugent, CCO of Swedencare’s North America division, said: “Through the acquisition of Riley’s, we have now entered the fast-growing organic treat market in North America. Pet parents have made organic pet treats one of the fastest growth categories and entering this category will allow Swedencare to utilise the Pet MD Brands team and technology to accelerate the excellent above industry growth both Riley’s and Pet MD Brands have seen throughout 2023.
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“We see exciting opportunities to quickly add Riley’s high quality, organic and premium products and cross-sell into the US veterinary and US pet retail markets through our existing North American brands. In addition, we are exploring expanding the range internationally through other Swedencare subsidiaries.”
The transaction has been financed from operating cash flow and has “not affected Swedencare’s ability to make quarterly amortisations on its long-term loans”, according to a statement.
Swedencare’s Pet MD division has developed supplements, vitamins, dental care, ear cleaners and pilling agents since 2002.