Grove Inc. Signs Letter of Intent to Acquire Pet Care Company Through Its Amazon Aggregation Division, Upexi

Rhea-AI Summary

Grove Inc. (NASDAQ:GRVI) has signed a letter of intent to acquire a pet care company specializing in grooming and nutrition products. This acquisition is aimed at tapping into the $200 billion international pet care market, projected to grow at a 4.9% CAGR by 2025. The deal could enhance Grove's product offerings and generate additional revenue through diverse sales channels. CEO Allan Marshall expressed optimism about closing the deal within the current quarter, emphasizing the strategic significance of this acquisition for Grove's expansion in the pet care sector.

Positive

• Entry into a $200 billion pet care market with a 4.9% CAGR by 2025.
• Acquisition expected to be cash flow positive, enhancing revenue potential.
• Expansion of sales channels through eCommerce and direct-to-consumer brands.

Negative

• None.

HENDERSON, NV, April 07, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Grove Inc., (NASDAQ:GRVI) ("Grove" or the "Company") has signed a letter of intent to acquire a pet care company, offering both grooming and nutrition products through multiple sales channels including business to business, eCommerce and Amazon. Grove aims to expand its product offerings through acquisitions made by its brand aggregation division, Upexi. 

The deal, if completed, will cement a foothold into the international pet care market, estimated to be a $200 billion market by 2025, growing at 4.9% CAGR. The pet care company is currently selling to the United States, Canada, and Australian markets, which will give Upexi an international presence in the industry. The transaction would be cash flow positive and adds potential revenue growth through additional sales channels and pet care products. 

Grove CEO, Allan Marshall, commented, “We’ve been looking to tap into the international pet care industry with our own direct-to-consumer brands. Our patience in finding the best-fitting acquisitions through our Amazon brand aggregator division seems to be paying off and we hope to close this deal in the current quarter.”

About Grove, Inc.

Grove, Inc. is a global innovator in hemp, health and wellness. The company has an array of in-house brands and operates in multiple verticals including SaaS programmatic ad technology, and a wholly owned division dedicated to acquiring high growth e-commerce brands. The company sells to numerous consumer markets including the botanical, beauty, pet care, and functional foods sectors. It seeks to take advantage of an emerging worldwide trend in consumer products selling through Amazon and E-commerce.

Company Contact
Andrew Norstrud
Email: investorinfo@cbd.io
Phone: (702) 332-5591

Investor Relations Contact
TraDigital IR
John McNamara
Email: john@tradigitalir.com
Phone: (917) 658-2602

Forward-Looking Statements

This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with business strategy, potential acquisitions, revenue guidance, product development, integration and synergies of acquiring companies and personnel. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

FAQ

What is Grove Inc. planning to acquire?

Grove Inc. plans to acquire a pet care company that offers grooming and nutrition products.

How will the acquisition impact Grove Inc.'s market presence?

The acquisition will establish Grove in the international pet care market, significantly expanding its product offerings.

What is the estimated size of the pet care market?

The pet care market is estimated to be $200 billion by 2025.

When does Grove Inc. expect to close the acquisition deal?

Grove Inc. hopes to close the acquisition deal in the current quarter.

What are the expected financial benefits of the acquisition for Grove Inc.?

The transaction is expected to be cash flow positive and provide additional revenue growth through expanded sales channels.