Chewy announced the acquisition of SmartEquine, a leading U.S. provider of equine health products, from Covetrus. The all‑cash transaction is expected to close in the fourth quarter of fiscal year 2025 and will be financed through Chewy’s existing balance sheet.
SmartEquine, formerly SmartPak until its July 2025 rebranding, offers subscription‑based supplement programs, personalized nutrition plans, and a broad portfolio of tack, gear, and therapeutic products. The acquisition adds a loyal customer base and a high‑margin product mix that complements Chewy’s pet‑health and pharmacy services.
The deal aligns with Chewy’s strategy to grow its health and wellness verticals. Chewy’s fiscal year 2024 net sales were $11.86 billion, up 6.4% year‑over‑year, with a gross margin of 29.2%. In the third quarter of fiscal year 2024, net sales were $2.88 billion, up 4.8% year‑over‑year, with a margin of 29.3%; in the second quarter of fiscal year 2025, net sales were $3.10 billion, up 8.6% year‑over‑year, with a margin of 30.4%. Chewy reaffirmed its third‑quarter fiscal year 2025 guidance following the announcement.
Covetrus is divesting SmartEquine to sharpen focus on its core technology‑enabled veterinary solutions. The acquisition positions Chewy to capture a larger share of the U.S. veterinary services market and expand into higher‑margin equine health segments.
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