- Mad Paws (MPA) enters a binding agreement to acquire Australian dog treat and toy subscription business Gassett Group
- The company, which trades as Waggly Club, will be acquired for $2 million in cash and $1 million in Mad Paws fully paid ordinary shares at 25 cents per share
- The Waggly Club acquisition is not subject to conditions and is expected to complete today
- Mad Paws shares were up 8.82 per cent, trading at 18.5 cents at 2:00 pm AEST
Mad Paws (MPA) has pounced on a binding agreement to acquire one of the largest dog treat and toy subscription businesses in Australia.
Gassett Group, which trades as Waggly Club, was first launched in 2016 and offers customers monthly subscription boxes ranging from $45 to $52 per month of Australian-made, healthy dog treats and tailored toys.
Mad Paws will acquire 100 per cent of shares in Gassett Group for $2 million in cash and $1 million in Mad Paws fully paid ordinary shares at 25 cents per share.
A further $500,000 will be payable in cash after completion, subject to the Waggly Club business achieving agreed revenue-based performance hurdles.
Waggly Club rolls out around 2000 boxes per month, accounting for 70 per cent of its revenue, with the remaining 30 per cent generated from its online store. From The company’s revenue almost doubled from $800,000 to $1.5 million from FY2020 to FY2021.
Mad Paws says its current and planned offerings in the premium subscription market are strongly aligned with Waggly’s vision, with the products being highly complementary.
“As we look to our next horizon, my aim is to scale Waggly and reach more and more dogs and their fur parents each month,” said Waggly Founder and CEO, Kate Herbert.
“To this end, I feel Mad Paws and Waggly are a perfect match.”
The Waggly Club acquisition is not subject to conditions and is expected to be completed today.
The company says it’s looking forward to delivering more tail wags across the country.
Mad Paws shares are up 8.82 per cent, trading at 18.5 cents at 2:00 pm AEST.