Dogs and cats are coming together with the acquisition of Fairport Harbor’s OurPet’s Co. and Wichita’s Hyper Pet LLC.
OurPet’s, a seller of a range of pet supplies, will merge with a newly formed subsidiary of Hyper Pet and become a wholly owned subsidiary of the pet hardgoods and treats company.
The deal is valued at roughly $20 million, based on a purchase price of $1 per share and a current stock float of about 20 million shares. The price represents better than a 50 percent premium over OurPet’s recent trading level of about 65 cents a share on the Over the Counter market (OTCQX:OPCO).
“We are very excited about the potential of bringing together these two great companies,” Hyper Pet CEO Tim Blurton said in a statement. “Both have a history and reputation for bringing a broad range of innovative products to market to help families enjoy their pets. Adding the strength of OurPet’s in the cat category to the historic strength of Hyper Pet in the dog category will now enable us to provide a comprehensive range of products to all pet owners.”
OurPet’s board of directors unanimously approved entry into the merger agreement.
“This merger validates the company’s deep intellectual property portfolio, established brand equity and diverse customer base,” OurPet’s CEO Dr. Steven Tsengas stated. “In partnering with Hyper Pet, we maintain our dedication to developing and marketing high quality, innovative products for improving the health, safety, comfort and enjoyment of pets.”
The transaction is expected to finalize in Q1 of 2019.
Assisting on the deal:
- Falls River Group, LLC is serving as exclusive financial adviser to OurPet’s.
- Boenning & Scattergood provided a fairness opinion to OurPet’s board of directors.
- Kohrman Jackson & Krantz LLP is serving as legal counsel to OurPet’s in connection with the transaction.
- DLA Piper LLP (U.S.) is serving as legal counsel for Hyper Pet in connection with the transaction.