Better Choice Company Signs Binding Letter of Intent to Acquire Choice Specialty Pharmacy, Expanding U.S. Presence
Rhea-AI Summary
Better Choice Company (NYSE American: BTTR) has signed a binding Letter of Intent to acquire Choice Specialty Pharmacy Group, a specialized pharmacy services provider in the U.S. The acquisition price will be based on 6X of Choice Specialty's FY2024 Adjusted EBITDA of approximately $4.68 million, paid through a combination of stock and cash.
Founded in 2015, Choice Specialty Pharmacy Group operates across multiple states, providing specialty pharmacy services, infusion clinic services, and maintains a sterile compounding facility. This strategic move will expand Better Choice's presence in the U.S. market and complement their existing SRx platform in Canada.
The acquisition aligns with Better Choice's strategy to establish itself as a prominent healthcare services company in North America, leveraging operational synergies and best practices from both organizations.
Positive
- Acquisition adds approximately $4.68 million in Adjusted EBITDA
- Expands geographic presence into U.S. market
- Gains sterile compounding facility capabilities
- Operational synergies expected through integration with existing Canadian operations
Negative
- Stock dilution expected due to partial payment in shares
- Integration costs and risks associated with cross-border operations
News Market Reaction
On the day this news was published, BTTR declined 3.36%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
TAMPA, Fla., March 11, 2025 (GLOBE NEWSWIRE) -- Better Choice Company, Inc. (NYSE American: BTTR) (“Better Choice” or the “Company”), a pet health and wellness company, today announced that it has signed a binding Letter of Intent (LOI) to acquire
"With the addition of Choice Specialty Pharmacy Group alongside our SRx platform in Canada, we are now executing on our strategy to build a healthcare services company with significant market share in North America. Additionally, with the closing of Choice Specialty we will now have a sterile compounding facility in the U.S. and are well positioned to capitalize on strong industry tailwinds, leverage best practices of both companies and realize operating efficiencies," said Michael Young, Chairman of Better Choice. "This marks an exciting step in our expansion strategy, and we look forward to further growing our presence in the U.S. market."
Founded in 2015, Choice Specialty Pharmacy Group is a fully licensed provider across multiple states, offering a range of services including specialty pharmacy, infusion clinic services, and a sterile compounding facility. The acquisition strengthens Better Choice’s commitment to becoming a leading North American healthcare services provider, offering high-quality patient care across borders.
About Better Choice Company Inc.
Better Choice Company Inc. is a rapidly growing pet health and wellness company committed to leading the industry shift toward pet products and services that help dogs and cats live healthier, happier, and longer lives. We take an alternative, nutrition-based approach to pet health relative to conventional dog and cat food offerings and position our portfolio of brands to benefit from the mainstream trends of growing pet humanization and consumer focus on health and wellness. We have a demonstrated, multi-decade track record of success selling trusted pet health and wellness products and leverage our established digital footprint to provide pet parents with the knowledge to make informed decisions about their pet’s health. We sell our dog food, cat food and treats under the Halo brand, which is focused on providing sustainably sourced kibble and canned food derived from real whole meat, and minimally processed raw-diet food and treats. For more information, please visit https://www.betterchoicecompany.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. The Company has based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Some or all of the results anticipated by these forward-looking statements may not be achieved. Further information on the Company’s risk factors is contained in our filings with the SEC. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
| (1) | Adjusted EBITDA is a non-GAAP measure of unaudited calendar year 2024 results. The Company expects to receive audited results from the seller post the closing of the option purchase agreement. | |
Company Contact:
Better Choice Company, Inc.
Kent Cunningham, CEO
Investor Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
T: 212-896-1254
Valter@KCSA.com
FAQ
What is the purchase price for Better Choice Company's acquisition of Choice Specialty Pharmacy?
What services does Choice Specialty Pharmacy Group offer that BTTR will acquire?
How will the Choice Specialty Pharmacy acquisition expand BTTR's market presence?
When was Choice Specialty Pharmacy Group founded and what is its operational scope?
