PetMed Express, Inc. (NASDAQ: PETS) disclosed that it has received an unsolicited, non‑binding all‑cash acquisition proposal from Singapore‑based SilverCape Investments Limited, valuing the company at $4 per share. The offer represents a premium to the company’s current trading price of approximately $2.67 per share, reflecting SilverCape’s confidence in PetMed Express’s platform and potential upside after a turnaround.
The proposal comes amid a period of significant financial strain for PetMed Express. Net sales for the second quarter of fiscal year 2026 were estimated at $43.4‑$44.5 million, down from $58.0 million in the same quarter a year earlier. Six‑month net sales through September 30, 2025, were $94.5‑$95.6 million versus $124.3 million a year earlier. The company posted a net loss of $700,000, or $0.03 per diluted share, for the third quarter of fiscal year 2025, compared with a $2.0 million loss ($0.10 per diluted share) in the prior year quarter. Trailing‑twelve‑month EBITDA remains negative at $1.25 million and earnings per share are –$0.30.
Management has highlighted progress in its transformation program. Former CEO Sandra Campos noted improvements in Adjusted EBITDA and reductions in general and administrative expenses, as well as a deliberate cut in gross advertising spend to protect margins. The company’s board has extended its shareholder rights plan through December 2, 2026, to protect shareholders from a takeover without a control premium. The CEO and CFO resigned in August 2025, underscoring the leadership changes accompanying the turnaround effort.
SilverCape’s offer is all‑cash and not contingent on financing, indicating a strong belief in the value of PetMed Express’s national online pharmacy network and the potential for synergies under new ownership. The premium offered reflects the expected upside once the company’s financial performance stabilizes and the transformation initiatives mature.
Investors reacted positively to the announcement, with trading volume far exceeding the average for the stock. The market’s enthusiasm reflects the attractiveness of a $4 per share offer after a 70% decline in the company’s share price over the past year and the absence of a financing contingency.
If the board accepts the proposal, PetMed Express would become a wholly owned subsidiary of SilverCape, providing shareholders with an immediate exit at a premium. If the proposal is rejected, the company will continue its turnaround strategy under new leadership, focusing on cost discipline, digital experience enhancements, and operational consolidation. In either scenario, the proposal signals a critical juncture for the company’s future direction.
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