In Robust Year of M&A Deals, OurPet’s Company (O
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In its 20-year history OurPet’s Company has successfully rafted through its fair share of turbulence and placid waters, and today enjoys a position that evidences its canny ability to foster both innovation and corporate growth in the $71.3 billion pet products and services industry. A quick glance at what’s going on in this booming market shows why the company’s consistent sustainability is of vital importance at this particular moment.
Many experts contend that 2015 is on track to become a record setting year for global M&A activity, with takeover deals tallied in the trillions. A handful of numerous announced mega deals include Shell’s (NYSE: RDS-A) $81.5 billion purchase of British energy supplier BG Group; Charter Communication’s (NASDAQ: CHTR) $79.6 billion buyout of Time Warner Cable (NYSE: TWC); the $62.2 billion merger between Hienz and Kraft Foods – now the Kraft Heinz Company (NASDAQ: KHC); AB inBev’s $121 billion takeover of SAB Miller; and Anthem’s (NYSE: ANTM) $55.2 billion acquisition of Cigna (NYSE: CI), which is just one of many big deals in the healthcare industry this year.
Another M&A deal on deck brings us back to the pet products and services industry. Petco Holdings, which operates about 1,300 stores nationwide, is now in the limelight as two private equity-led suitors gear up to bid more than $4 billion for the No. 2 pet supply chain, reports the New York Post.
According to The Post, this puts Petco for sale at less than 10 times the company’s $480 million annual EBITDA; it’s noteworthy that buyout firm BC Partners paid $8.7 billion, roughly nine times EBITDA, for the better-performing PetSmart (NASDAQ: PETM) last year.
While large-cap deals with billions in the mix certainly dominate the headlines, the M&A activity – along with its strengthening position in the pet-supply industry and the ongoing interest in – reinstates for OurPet’s a beacon of potential as an acquisition target in the future. For the time being, the Petco and PetSmart deals represent the vast opportunities in the growing pet products and services industry.
OurPet’s develops, produces and markets various innovative pet accessory and consumable products. The company has 160 patents/patents pending, which facilitate its entrance into major national retailers, including Petco and PetSmart, Amazon (NASDAQ: AMZN), and many more. You can view the full list here http://www.ourpets.com/where-to-buy-our-products/.
Transitioning from a small-sized to medium-sized company has been no easy feat for OurPet’s though the company has adroitly managed to do so as it builds its offerings of award-winning, innovative products. OurPet’s operates two unique brands to anchor a spot in both the pet specialty and food/drug/mass market channels. The OurPet’s brand caters to pet specialty consumers while the Pet Zone brand focuses on the latter market.
With this business model, the company has steadily increased revenues – recording full-year 2014 sales of $22.7 million, $21.5 million in 2013, $20.1 million in 2012, and $19.6 million in 2011- driven by sales of its innovative pet specialty products. Side Note *Demonstrating an impressive level of transparency for an OTC stock, OurPet’s has posted nine years of well-presented annual reports on its website here: http://www.ourpets.com/upkeep/annual-report/.
The company most recently reported third-quarter results with quarterly revenue of nearly $6.0 million and an increase of 428% in net income to $410,450. Year-to-date, OurPet’s has increased revenue 6% to $17.1 million, and though the company stops short of issuing any full-year guidance, these results potentially putting it on track to maintain its four-year annual sales growth pattern.
OurPet’s key executives recently interviewed with MissionIR (listen to the interview here http://OPCO.MissionIR.com/interview.html) to discuss the company’s operations, how it plans on leveraging its innovations to sustain its growth in the pet products and services industry, existing partnerships around the world, and upcoming announcements with corporations in Japan.
Perhaps most importantly, taking into consideration the robust global M&A environment and current attention on the pet products and services industry, is company co-founder and CEO Dr. Steven Tsengas’ statement that the company plans to “grow double to triple the industry growth.”
Though its brand recognition is lesser than its large-cap peers, OurPet’s is definitely worth putting on your radar as a long and/or short-term investment consideration. For now, keep your eyes on the impending Petco purchase to see what the industry hype is all about and for a glimpse of what the future could hold for OurPet’s.
For more information visit www.ourpets.com
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