Direct-to-consumer e-commerce leader EMERGE Commerce is in acquisition mode, adding their 8th brand in North America.
In their first foray into the B2B e-commerce space, EMERGE has acquired WholeSalePet.com for up to USD $25 million.
Founded in 2001, WholesalePet.com connects over 8,000 independent retail locations with over 400 independent pet vendors, offering over 1 million SKUs. WholesalePet.com has facilitated over US$250 million in gross merchandise sales (GMS) over the last 20 years with an average customer tenure of 10 years.
WholeSalePet.com operates an asset-light business model, carrying no inventory, and delivers a high return on assets with low profit volatility and high cash flow flexibility.
“With the acquisition of WholesalePet.com, we have procured a profitable market leader in the lucrative B2B pet e-commerce space. With an impressive 20-year track record of steady organic revenue growth, profitability, and cash flows, WholesalePet.com will fit perfectly in the EMERGE ecosystem. The business has impeccable net revenue retention and requires minimal marketing spend, with a merchant network that is now 8,000+ strong,” said EMERGE Founder and CEO, Ghassan Halazon.
“This acquisition marks our first foray into both the sticky B2B e-commerce space, as well as the pets vertical, one of the fastest-growing segments in the e-commerce sector. We are thrilled to welcome Chris, Bo and the veteran WholesalePet.com team to the EMERGE family.”
This is EMERGE’s seventh acquisition in North America, and its third acquisition since becoming publicly listed on the TSXV in December 2020. EMERGE acquired subscription businesses BattlBox and Carnivore Club in August 2021.
EMERGE’s e-commerce portfolio now eclipses $100 million in pro-forma GMS and includes WholesalePet.com, trulocal.ca, BattlBox.com, UnderPar.com, JustGolfStuff.ca, CarinvoreClub.co, WagJag.com, and BeRightBack.ca.