Brazil’s Petz acquires Zee.Dog for US$137 million, in move to become major pet ecosystem

RIO DE JANEIRO, BRAZIL – Petz (PETZ3) has just announced to the market the acquisition of Zee.Dog for R$715 (US$137) million.

The acquisition strengthens the company’s strategy to consolidate the pet products and services market. That plan was made possible last year by its initial public offering last September, when Petz turned over about R$3 billion. The company’s share price has increased by 72% since the IPO.

“The merger expands Petz’s horizons and opens new growth opportunities through Zee.Dog’s expertise in brand management, exclusive product development, sourcing, and technology,” Petz’s press release states.

The company also points to “the distribution network for small pet stores in Brazil and for the international pet market.” On the other hand, Petz adds “the largest and most integrated pet ecosystem in Brazil, with a presence of 144 stores in 18 states in the five regions of the country.”

Zee.Dog was founded in 2011 by brothers Felipe and Thadeu Diz and Rodrigo Monteiro. It is a platform with accessory products for dogs, present in more than 45 countries, with international business representing about 30% of sales – the estimate is 228 million reais this year, with a growth of 83%.

Felipe and Thadeu Diz and Rodrigo Monteiro will continue the management of Zee.Dog, which will function as Petz’s business unit. Current shareholders will retain the equivalent of 5.7% in Petz.

Distribution channels include sales in major global pet groups such as Pets at Home in the United Kingdom, as well as Chewy and a recent partnership with department store chain Nordstrom in the United States. Through a strategy that combines design, quality, and storytelling of its products, Zee.dog is improving customer conversion.

Just over a year ago, Zee.dog received a R$100 million investment in a round led by TreeCorp.

“Our plan is to create a globally recognized pet ecosystem by 2025, a date that is already within reach. Our strategy is to do this organically, with internal solutions, and inorganically, with acquisitions like today’s,” Petz CEO Sergio Zimerman told Exame in late June on the occasion of the company’s purchase of the Cansei de Ser Gato platform for an undisclosed amount.

“Anything that completes the pet ecosystem is our target. We are proactively looking at all the businesses that make sense to us, according to our six objectives: exclusive products, content, education, new services, shopping experience, and technology,” Petz’s CEO explained at the time.

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