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April 19, 2021updated 11 May 2021 7:13pm

US firm McLovin’s Pet Food gets new owner

By Dean Best

US pet-food supplier McLovin’s Pet Food has agreed to a takeover bid from Caduceus Corp., a revamped NASDAQ-listed holding company looking to acquire “consumer goods businesses”.

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  • Five-year forecasts and the impact of COVID-19
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  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
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Wyoming-based Caduceus Corp. was known until recent weeks as Caduceus Software Systems Corp., a company that designed and developed healthcare software.

In a stock-exchange filing dated 29 January, Caduceus Software Systems Corp. said it had appointed investment banker Alex Chen as CEO and also announced “a fresh start” for the business “with new vision and new talent and energy”.

On 30 March, the now renamed Caduceus Corp. unveiled a new business strategy “focused on strategic consumer goods acquisitions”, with Chen adding: “We believe the new strategy and vision formulated for the company through our target acquisition profile will allow us to create sustainable growth and shareholder value.”

On the Caduceus Corp. website, the company lists criteria for acquisition targets that include "revenue and assets exceeding US$5m", "projected revenues of over $15m for 2021" and "recession- and market-proof industries".

Announcing the move for McLovin's Pet Food, Chen said: "Consumer goods is an important and growing sector, especially given the current times. Our proven access to capital creates opportunities to pursue attractive targets in [the] very profitable consumer goods space. We intend to complete this transaction shortly, following which we will announce further details on the operations and what we plan for 2021."

To pay for the company, Caduceus Corp. said it will issue 1.5bn restricted common shares to McLovin's shareholders at a deemed price of $0.075 per share in exchange for the business, as well as a lump sum of US$500,000. More details on the transaction, including operations will be disclosed when the deal is finalised, Caduceus Corp. said.

According to the McLovin's Pet Food website, the company makes freeze-dried, raw, pet food, containing either beef, chicken or salmon.

David Ji, the company's CEO, said: "We pride ourselves on the great level of quality behind our manufacturing process and more importantly the fact that McLovin's sourcing is held to the highest standards of ethics and safety. The McLovin's products are made in USA and Canada and we believe this is a competitive advantage for us."

just-food has asked Caduceus Corp. for further comment.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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