Rover fetches Mad Paws for $62m

Rover’s interest is directed towards acquiring the Mad Paws marketplace business without its e-commerce division.

The Mad Paws platform supports more than 300,000 active pet owners and 70,000 registered pet care providers throughout Australia. Picture: Mark Stewart

US pet services group Rover will enter Australia through the acquisition of ASX-listed Mad Paws in a deal worth $62m, including $13m from the sale of the target’s Pet Chemist business to VetPartners Australia.

Private equity giant Blackstone bought Rover for $US2.2bn in 2024.

The Mad Paws platform supports more than 300,000 active pet owners and 70,000 registered pet care providers throughout Australia. Last year it facilitated more than 400,000 transactions, including for pet sitting, walking, daycare and grooming services.

Rover’s interest is directed towards acquiring the Mad Paws marketplace business without its e-commerce division under the Pet Chemist, Sash and Waggly brands.

Under the deal, Mad Paws shareholders will receive 14c a share in cash – an 87 per cent boost to its closing price of 7.5c on April 21 – if the scheme implementation deed is approved and other conditions, including FIRB approval, are met.

Accordingly, separate to the scheme, Mad Paws has entered into a share sale agreement with VetPartners by way of a sale of all the shares on issue in Animal Magnetism and its subsidiaries (Pet Chemist divestment).

Mad Paws will close down the remaining e-commerce businesses, Sash and Waggly.

The target’s board has unanimously recommended investors vote in favour of the scheme, in the absence of a superior bid and subject to an assessment by an independent expert.

Mad Paws’ largest shareholder, Bombora Special Investments Growth Fund, will vote its 14.5 per cent stake in favour of the deal, subject to conditions.

A Mad Paws sale has been speculated since Highbury Partnership was roped in as financial adviser in October last year.

“Rover and its team have led the way in the pet care space since 2011 and we couldn’t be more thrilled to partner with them,” Mad Paws CEO Justus Hammer said. Mad Paws shares surged 73 per cent to 13c on Tuesday.