| | |
Page
|
| |||
| | | | 1 | | | |
| | | | 1 | | | |
| | | | 2 | | | |
| | | | 2 | | | |
| | | | 3 | | | |
| | | | 3 | | | |
| | | | 5 | | | |
| | | | 5 | | | |
| | | | 5 | | | |
| | | | 6 | | | |
| | | | 6 | | | |
| | | | 6 | | | |
| | | | 7 | | | |
| | | | 8 | | | |
| | | | 8 | | | |
| | | | 8 | | | |
| | | | 9 | | | |
| | | | 10 | | | |
| | | | 10 | | | |
| | | | 11 | | | |
| | | | 12 | | | |
| | | | 13 | | | |
| | | | 13 | | | |
| | | | 14 | | | |
| | | | 23 | | | |
| | | | 25 | | | |
| | | | 25 | | | |
| | | | 25 | | | |
| | | | 25 | | | |
| | | | 25 | | | |
| | | | 26 | | | |
| | | | 26 | | | |
| | | | 27 | | | |
| | | | 27 | | | |
| | | | 28 | | | |
| | | | 28 | | | |
| | | | 28 | | | |
| | | | 28 | | | |
| | | | 29 | | | |
| | | | 29 | | | |
| | | | 30 | | | |
| | | | 30 | | |
| | |
Page
|
| |||
| | | | 31 | | | |
| | | | 31 | | | |
| | | | 31 | | | |
| | | | 32 | | | |
| | | | 32 | | | |
| | | | 33 | | | |
| | | | 41 | | | |
| | | | 45 | | | |
| | | | 52 | | | |
| | | | 54 | | | |
| | | | 61 | | | |
| | | | 61 | | | |
| | | | 66 | | | |
| | | | 66 | | | |
| | | | 69 | | | |
| | | | 71 | | | |
| | | | 72 | | | |
| | | | 73 | | | |
| | | | 74 | | | |
| | | | 75 | | | |
| | | | 76 | | | |
| | | | 76 | | | |
| | | | 76 | | | |
| | | | 77 | | | |
| | | | 78 | | | |
| | | | 78 | | | |
| | | | 81 | | | |
| | | | 85 | | | |
| | | | 87 | | | |
| | | | 89 | | | |
| | | | 89 | | | |
| | | | 90 | | | |
| | | | 93 | | | |
| | | | 94 | | | |
| | | | 94 | | | |
| | | | 95 | | | |
| | | | 96 | | | |
| | | | 97 | | | |
| | | | 98 | | | |
| | | | 98 | | | |
| | | | 98 | | | |
| | | | 98 | | |
|
Implied Per Share Equity Value Reference Ranges Based On:
|
| |
Per Share Price
|
| |||
|
CY2024E Adjusted EBITDA
$21.10 – $32.80
|
| |
CY2025E Adjusted EBITDA
$22.85 – $35.90
|
| |
$31.00
|
|
|
Announced
|
| |
Acquiror
|
| |
Target
|
|
| April 2023 | | |
•
Mars, Incorporated
|
| |
•
Heska Corporation
|
|
| February 2023 | | |
•
Post Holdings, Inc.
|
| |
•
The J.M. Smucker Company (select pet foods brands)
|
|
| January 2023 | | |
•
PetIQ, Inc.
|
| |
•
Rocco & Roxie Supply Co, LLC
|
|
| May 2022 | | |
•
TPG Inc. and Clayton, Dubilier & Rice, LLC
|
| |
•
Covetrus, Inc.
|
|
| January 2022 | | |
•
SwedenCare AB
|
| |
•
NaturVet
|
|
| December 2021 | | |
•
Vimian Group AB
|
| |
•
GlobalOne Pet Products LLC
|
|
| September 2021 | | |
•
Platinum Equity, LLC
|
| |
•
PetMate
|
|
| August 2021 | | |
•
Health & Happiness (H&H) International Holdings Ltd.
|
| |
•
Zesty Paws LLC
|
|
| July 2021 | | |
•
Vestar Capital Partners LLC
|
| |
•
PetHonesty LLC
|
|
| May 2021 | | |
•
General Mills, Inc.
|
| |
•
Tyson Foods, Inc. (pet treats business)
|
|
| December 2020 | | |
•
Nexus Capital Management LP
|
| |
•
The J.M. Smucker Company (Natural Balance pet food business)
|
|
| November 2020 | | |
•
Health & Happiness (H&H) International Holdings Ltd.
|
| |
•
Solid Gold Pet, LLC
|
|
| May 2020 | | |
•
Clayton, Dubilier & Rice, LLC
|
| |
•
Radio Systems Corporation
|
|
| January 2020 | | |
•
PetIQ, Inc.
|
| |
•
Elanco Animal Health Incorporated (CapStar business)
|
|
| October 2019 | | |
•
Better Choice Company Inc.
|
| |
•
Halo, Purely for Pets, Inc.
|
|
| August 2019 | | |
•
Elanco Animal Health Incorporated
|
| |
•
Bayer Aktiengesellschaft (animal health business)
|
|
| May 2019 | | |
•
PetIQ, Inc.
|
| |
•
Perrigo Company plc (animal health business)
|
|
|
Implied Per Share
Equity Value Reference Range |
| |
Per Share Price
|
|
|
$21.55 – $44.25
|
| |
$31.00
|
|
|
Implied Per Share
Equity Value Reference Range |
| |
Per Share Price
|
|
|
$25.75 – $36.90
|
| |
$31.00
|
|
$ in millions
|
| |
2023E
|
| |
2024E
|
| |
2025E
|
| |
2026E
|
| |
2027E
|
| |||||||||||||||
Total Net Sales
|
| | | $ | 1,015.0 | | | | | $ | 1,203.8 | | | | | $ | 1,417.4 | | | | | $ | 1,627.9 | | | | | $ | 1,800.5 | | |
Total Cost of Sales(1)
|
| | | $ | 766.2 | | | | | $ | 894.7 | | | | | $ | 1,043.0 | | | | | $ | 1,183.8 | | | | | $ | 1,304.7 | | |
Gross Profit
|
| | | $ | 248.7 | | | | | $ | 309.0 | | | | | $ | 374.4 | | | | | $ | 444.1 | | | | | $ | 495.8 | | |
Operating Expenses(1)
|
| | | $ | 172.1 | | | | | $ | 203.9 | | | | | $ | 223.6 | | | | | $ | 247.6 | | | | | $ | 268.9 | | |
EBITDA(2) | | | | $ | 76.6 | | | | | $ | 105.1 | | | | | $ | 150.9 | | | | | $ | 196.5 | | | | | $ | 226.8 | | |
Adjusted EBITDA(3)
|
| | | $ | 89.1 | | | | | $ | 117.1 | | | | | $ | 164.1 | | | | | $ | 211.1 | | | | | $ | 242.8 | | |
$ in millions
|
| |
2024E(4)
|
| |
2025E
|
| |
2026E
|
| |
2027E
|
| |
2028E
|
| |
2029E
|
| ||||||||||||||||||
Total Net Sales
|
| | | $ | 1,161.0 | | | | | $ | 1,233.6 | | | | | $ | 1,358.0 | | | | | $ | 1,465.8 | | | | | $ | 1,584.2 | | | | | $ | 1,697.4 | | |
Total Cost of Sales(1)
|
| | | $ | 868.4 | | | | | $ | 903.0 | | | | | $ | 983.4 | | | | | $ | 1,054.8 | | | | | $ | 1,132.2 | | | | | $ | 1,199.1 | | |
Gross Profit
|
| | | $ | 292.7 | | | | | $ | 330.6 | | | | | $ | 374.6 | | | | | $ | 411.0 | | | | | $ | 452.0 | | | | | $ | 498.4 | | |
Operating Expenses(1)
|
| | | $ | 189.7 | | | | | $ | 203.1 | | | | | $ | 229.9 | | | | | $ | 243.3 | | | | | $ | 260.0 | | | | | $ | 277.3 | | |
EBITDA(2) | | | | $ | 103.0 | | | | | $ | 127.5 | | | | | $ | 144.7 | | | | | $ | 167.8 | | | | | $ | 192.0 | | | | | $ | 221.0 | | |
Adjusted EBITDA(3)
|
| | | $ | 125.9 | | | | | $ | 140.5 | | | | | $ | 157.5 | | | | | $ | 181.7 | | | | | $ | 207.2 | | | | | $ | 237.5 | | |
Name
|
| |
Cash
($)(1) |
| |
Equity
($)(2) |
| |
Perquisites/
Benefits ($)(3) |
| |
Other
($)(4) |
| |
Total
($) |
| |||||||||||||||
McCord Christensen
|
| | | | 10,000,000 | | | | | | 15,848,135 | | | | | | 39,647 | | | | | | 1,633,905 | | | | | | 27,521,687 | | |
Zvi Glasman
|
| | | | 1,143,459 | | | | | | 3,705,992 | | | | | | — | | | | | | 289,792 | | | | | | 5,139,242 | | |
Michael Smith
|
| | | | 764,400 | | | | | | 9,602,612 | | | | | | — | | | | | | 1,146,600 | | | | | | 11,513,612 | | |
John Pearson
|
| | | | 558,480 | | | | | | 3,138,192 | | | | | | — | | | | | | 837,720 | | | | | | 4,534,392 | | |
William Carter
|
| | | | — | | | | | | 1,789,537 | | | | | | — | | | | | | 675,000 | | | | | | 2,464,537 | | |
Name
|
| |
Shares
(#)(1) |
| |
Shares
($) |
| |
Options
(#)(2) |
| |
Options
($) |
| |
RSUs
(#)(3) |
| |
RSUs
($) |
| |
Total
($) |
| |||||||||||||||||||||
McCord Christensen
|
| | | | 259,702(4) | | | | | | 8,050,762 | | | | | | 379,021 | | | | | | 2,937,875 | | | | | | 335,643 | | | | | | 10,404,933 | | | | | | 21,393,570 | | |
Zvi Glasman
|
| | | | 25,800(5) | | | | | | 799,800 | | | | | | 36,513 | | | | | | 165,947 | | | | | | 92,927 | | | | | | 2,880,737 | | | | | | 3,846,484 | | |
Michael Smith
|
| | | | 97,808 | | | | | | 3,032,048 | | | | | | 85,034 | | | | | | 370,037 | | | | | | 269,468 | | | | | | 8,353,508 | | | | | | 11,755,593 | | |
John Pearson
|
| | | | 16,339 | | | | | | 506,509 | | | | | | — | | | | | | — | | | | | | 80,514 | | | | | | 2,495,934 | | | | | | 3,002,443 | | |
William Carter
|
| | | | 3,497 | | | | | | 108,407 | | | | | | — | | | | | | — | | | | | | 41,033 | | | | | | 1,272,023 | | | | | | 1,380,430 | | |
Mark First
|
| | | | 18,547(6) | | | | | | 574,957 | | | | | | — | | | | | | — | | | | | | 4,103 | | | | | | 127,193 | | | | | | 702,150 | | |
Allan Hall
|
| | | | 12,807 | | | | | | 397,017 | | | | | | — | | | | | | — | | | | | | 4,103 | | | | | | 127,193 | | | | | | 524,210 | | |
Scott Huff
|
| | | | 6,077 | | | | | | 188,387 | | | | | | — | | | | | | — | | | | | | 4,103 | | | | | | 127,193 | | | | | | 315,580 | | |
Kim Lefko
|
| | | | 14,822 | | | | | | 459,482 | | | | | | — | | | | | | — | | | | | | 4,103 | | | | | | 127,193 | | | | | | 586,675 | | |
Sheryl O’Loughlin
|
| | | | 14,822 | | | | | | 459,482 | | | | | | — | | | | | | — | | | | | | 4,103 | | | | | | 127,193 | | | | | | 586,675 | | |
Kenneth Walker
|
| | | | 13,363 | | | | | | 414,253 | | | | | | — | | | | | | — | | | | | | 4,103 | | | | | | 127,193 | | | | | | 541,446 | | |
| | |
Shares of Class A
Common Stock Beneficially Owned |
| |
Shares of Class B
Common Stock Beneficially Owned |
| |
Combined
Voting Power |
| |||||||||||||||||||||
Name of Beneficial Owner
|
| |
Number
|
| |
Percentage
|
| |
Number
|
| |
Percentage
|
| ||||||||||||||||||
5% Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
BlackRock, Inc.(1)
|
| | | | 2,911,862 | | | | | | 9.8% | | | | | | — | | | | | | — | | | | | | 9.7% | | |
The Vanguard Group(2)
|
| | | | 2,147,759 | | | | | | 7.2% | | | | | | — | | | | | | — | | | | | | 7.2% | | |
Eos Funds(3)
|
| | | | 1,972,687 | | | | | | 6.6% | | | | | | — | | | | | | — | | | | | | 6.6% | | |
James Nathan Clarke(4)
|
| | | | 1,690,802 | | | | | | 5.7% | | | | | | — | | | | | | — | | | | | | 5.7% | | |
Glazer Capital, LLC(5)
|
| | | | 1,636,073 | | | | | | 5.5% | | | | | | — | | | | | | — | | | | | | 5.5% | | |
Named Executive Officers and Directors: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
McCord Christensen(6)
|
| | | | 511,376 | | | | | | 1.7% | | | | | | 114,027 | | | | | | 49.2% | | | | | | 2.1% | | |
Zvi Glasman(7)
|
| | | | 44,056 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
Mark First(3)(8)
|
| | | | 1,991,234 | | | | | | 6.7% | | | | | | — | | | | | | — | | | | | | 6.7% | | |
William Carter(9)
|
| | | | 3,497 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
John Pearson(10)
|
| | | | 16,339 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
Michael Smith(11)
|
| | | | 179,336 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
Allan Hall(8)
|
| | | | 12,807 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
Scott Huff(8)
|
| | | | 6,077 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
Kimberly Lefko(8)
|
| | | | 14,822 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
Sheryl O’Loughlin(8)
|
| | | | 14,822 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
Kenneth Walker(8)
|
| | | | 13,363 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
R. Michael Herrman(12)
|
| | | | 14,764 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
Total Executive Officers and Directors as a Group (12 Persons)
|
| | | | 2,847,194 | | | | | | 9.4% | | | | | | 114,027 | | | | | | 49.2% | | | | | | 9.7% | | |
| | |
Page
|
| |||
| | | | A-2 | | | |
| | | | A-2 | | | |
| | | | A-2 | | | |
| | | | A-2 | | | |
| | | | A-2 | | | |
| | | | A-3 | | | |
| | | | A-4 | | | |
| | | | A-6 | | | |
| | | | A-6 | | | |
| | | | A-7 | | | |
| | | | A-7 | | | |
| | | | A-7 | | | |
| | | | A-7 | | | |
| | | | A-8 | | | |
| | | | A-8 | | | |
| | | | A-9 | | | |
| | | | A-11 | | | |
| | | | A-11 | | | |
| | | | A-12 | | | |
| | | | A-12 | | | |
| | | | A-14 | | | |
| | | | A-16 | | | |
| | | | A-16 | | | |
| | | | A-17 | | | |
| | | | A-17 | | | |
| | | | A-17 | | | |
| | | | A-18 | | | |
| | | | A-21 | | | |
| | | | A-22 | | | |
| | | | A-22 | | | |
| | | | A-23 | | | |
| | | | A-23 | | | |
| | | | A-23 | | | |
| | | | A-23 | | | |
| | | | A-24 | | | |
| | | | A-24 | | | |
| | | | A-24 | | | |
| | | | A-24 | | | |
| | | | A-25 | | | |
| | | | A-25 | | | |
| | | | A-25 | | |
| | |
Page
|
| |||
| | | | A-26 | | | |
| | | | A-26 | | | |
| | | | A-26 | | | |
| | | | A-26 | | | |
| | | | A-26 | | | |
| | | | A-27 | | | |
| | | | A-27 | | | |
| | | | A-27 | | | |
| | | | A-28 | | | |
| | | | A-28 | | | |
| | | | A-29 | | | |
| | | | A-29 | | | |
| | | | A-29 | | | |
| | | | A-29 | | | |
| | | | A-29 | | | |
| | | | A-30 | | | |
| | | | A-30 | | | |
| | | | A-30 | | | |
| | | | A-31 | | | |
| | | | A-35 | | | |
| | | | A-37 | | | |
| | | | A-37 | | | |
| | | | A-38 | | | |
| | | | A-40 | | | |
| | | | A-42 | | | |
| | | | A-44 | | | |
| | | | A-45 | | | |
| | | | A-45 | | | |
| | | | A-49 | | | |
| | | | A-50 | | | |
| | | | A-51 | | | |
| | | | A-51 | | | |
| | | | A-51 | | | |
| | | | A-51 | | | |
| | | | A-51 | | | |
| | | | A-52 | | | |
| | | | A-52 | | | |
| | | | A-52 | | | |
| | | | A-52 | | | |
| | | | A-52 | | | |
| | | | A-53 | | |
| | |
Page
|
| |||
| | | | A-53 | | | |
| | | | A-54 | | | |
| | | | A-54 | | | |
| | | | A-55 | | | |
| | | | A-56 | | | |
| | | | A-60 | | | |
| | | | A-60 | | | |
| | | | A-60 | | | |
| | | | A-61 | | | |
| | | | A-61 | | | |
| | | | A-61 | | | |
| | | | A-63 | | | |
| | | | A-63 | | | |
| | | | A-63 | | | |
| | | | A-64 | | | |
| | | | A-64 | | | |
| | | | A-64 | | | |
| | | | A-64 | | | |
| | | | A-64 | | |
Name
|
| |
Mailing Address
|
|
Kelsey D. Stevens | | | Davis Polk & Wardwell LLP | |
| | | 450 Lexington Avenue | |
| | | New York, New York 10017 | |
| | | |
Kelsey D. Stevens
Incorporator |
|
Exhibit 107
CALCULATION OF FILING FEE TABLES
Schedule 14A
(Form Type)
PetIQ, Inc.
(Exact Name of Registrant as Specified in its Charter)
Table 1: Transaction Valuation
Proposed Maximum Aggregate Value of Transaction | Fee Rate | Amount of Filing Fee | ||||||||||
Fees to be Paid | $ | 1,138,543,009.50 | .00014760 | $ | 168,049 | |||||||
Fees Previously Paid | $ | 0 | $ | 0 | ||||||||
Total Transaction Valuation | $ | 1,138,543,009.50 | ||||||||||
Total Fees Due for Filing | $ | 168,049 | ||||||||||
Total Fees Previously Paid | $ | 0 | ||||||||||
Total Fee Offsets | $ | 0 | ||||||||||
Net Fee Due | $ | 168,049 |
(1) As of August 30, 2024, the maximum number of shares of Registrant’s Class A common stock to which this transaction applies was estimated solely for the purposes of calculating the filing fee to be 37,240,011 shares, consisting of (1) 29,668,517 issued and outstanding shares of Class A common stock entitled to receive the per share price of $31.00; (2) 231,540 issued and outstanding shares of the Registrant’s Class B common stock to be automatically exchanged (together with their corresponding units of PetIQ Holdings, LLC) in connection with the consummation of the transaction on a one-to-one basis for shares of Class A common stock entitled to receive the per share price of $31.00; (3) 711,290 shares of Class A common stock underlying outstanding stock options with an exercise price below the per share price of $31.00, which may be entitled to receive the per share price of $31.00 minus the applicable exercise price of the applicable option (the weighted average exercise price of all such stock options being $22.35); (4) 1,780,436 shares of Class A common stock subject to or otherwise deliverable in connection with outstanding restricted stock units, which may be entitled to receive the per share price of $31.00; and (5) 4,848,228 shares of Class A common stock issuable upon the conversion of the outstanding convertible notes pursuant to the terms of the Indenture, dated as of May 19, 2020, by and between the Registrant and Wells Fargo Bank, National Association, which may be entitled to receive the per share price of $31.00. The proposed maximum aggregate value of the transaction was calculated pursuant to Exchange Act Rule 0-11 based on the per share price of $31.00 for items (1), (2), (4) and (5) above. For item (3), the total number of shares of Class A common stock underlying outstanding stock options with an exercise price below $31.00 was multiplied by $8.65, which is the difference between the per share price of $31.00 and the weighted average exercise price of $22.35 of all such stock options.