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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