28 October 2019
L1 Health to acquire Destination Pet and launch new animal health and wellness platform in US and Europe
- Destination Pet is a leader in US pet health care services and trusted high-quality pet care and vet services provider.
- This acquisition enables Destination Pet to strengthen and grow its service platform in the US and expand into the European market.
- L1 aims to be a global leader in pet health and wellness services and will commit up to $450 million overall to invest in this sector.
L1 Health has today announced an agreement to acquire Destination Pet, LLC (“Destination Pet”), a US pet health care provider and its intention to become a global leader in pet health & wellness.
Headquartered in Highlands Ranch, Colorado, Destination Pet offers pet owners veterinary services combined with other pet health and wellness services - including daycare, grooming, and boarding. In the US Destination Pet is recognised as a partner, and provider of choice, by the vet community and pet owners.
Similar to human health care, pet health care is a local business, and trust plays a major role in attracting and retaining customers. By maintaining the local culture, branding, and operating teams of local veterinary practices across the US in 14 states, Destination Pet’s large clinic network with strong client relationships, characteristic of independent providers, and its’ integrated customer-centric hub service provision model, positions it well for future growth.
The increasing rate of humanization of pets coupled with the hectic schedule of pet owners has resulted in growing demand for pet health & wellness services. The global pet care market value is expected to hit $269bn by 2025 and the U.S. pet care market is forecasted to grow at 3-5% annually and is valued at $48bn. L1 aims to be a global leader in pet health & wellness services.
“With a differentiated platform and an experienced global management team, the acquisition of Destination Pet fits squarely within our focus on building leading companies and teams that occupy a strategic role in the healthcare sector,” said Meghan Fitzgerald, Managing Partner at L1 Health. “We share in the company’s vision to deliver a new model of innovation in the animal health space, and believe the business is positioned to grow in an attractive and growing market which will create significant value going forward.”
L1 will commit up to $450 million of capital to the effort, to acquire and scale Destination Pet.
Shane Kelly, Global CEO of Destination Pet, will retain his role alongside Destination Pet’s experienced executive team. “We are passionate about delivering superior pet care with a streamlined customer experience, promoting connectivity between pet owners and our network of animal care specialists,” said Shane Kelly, Global CEO of Destination Pet. “This transaction enables us and our employees to accelerate our growth trajectory with the ultimate goal of providing better care to pets and a better customer experience to pet owners.”
“This investment coupled with a targeted acquisition strategy, will help accelerate the company’s continued expansion, extending Destination Pet’s reach to even better serve its existing and potential customers,” said Ivan Zhivago, Partner at L1 Health. As an international investment firm with deep knowledge of diverse markets and patient long-term capital, L1 is well positioned to bring this model to additional markets. “Destination Pet offers us an engine of experience and transferable assets to expand into Europe, with a platform on which to scale,” Zhivago.
About Letter One
LetterOne was founded in 2013 and is an international investment business headquartered in Luxembourg. LetterOne’s strategy is to build a new portfolio of successful companies that are leaders in their fields and sectors. It makes long- term investments of its own capital in companies in which its sectoral experience and strategic and geographic expertise will improve performance and help companies grow. It has recruited world-class CEOs, sector investment teams and Advisory Boards to invest at scale. It buys and builds assets, which it can develop over time as platforms of long-term sustainable growth. It invests through L1 Energy, L1 Technology, L1 Health and L1 Retail.