v3.26.1
Acquisitions
 3 Months Ended
May 03, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisitions Acquisitions
SmartPak Acquisition

On October 28, 2025, the Company entered into a definitive agreement to acquire SmartPak Equine, LLC (“SmartPak”). Under the terms of the definitive agreement, on February 2, 2026, the Company completed the acquisition of 100% of the membership interest in SmartPak, and SmartPak became a wholly-owned subsidiary of the Company. SmartPak is a leading provider of equine health and nutrition products and the acquisition is expected to further strengthen the Company’s pet healthcare and specialty product offerings.

The following table reconciles the estimated purchase price to the cash paid for the acquisition, net of cash acquired (in millions):

Estimated purchase price$175.0 
Less: cash acquired0.2 
Cash paid for acquisition of business, net of cash acquired$174.8 

The SmartPak transaction was accounted for as a business combination in accordance with ASC 805 “Business Combinations.” Assets acquired and liabilities assumed were recorded in the accompanying condensed consolidated balance sheet at their estimated fair values, with the remaining unallocated purchase price recorded as goodwill. Goodwill represents the expected synergies and cost rationalization from the merger of operations as well as intangible assets that do not qualify for separate recognition such as an assembled workforce.

The following table summarizes the assets acquired and liabilities assumed as of the acquisition date (in millions):

Assets acquired:
Cash and cash equivalents$0.2 
Accounts receivable0.6 
Inventories15.2 
Prepaid expenses and other current assets2.7 
Property and equipment, net4.7 
Operating lease right-of-use assets2.5 
Goodwill73.9 
Identified intangible assets88.0 
Other non-current assets0.1 
Liabilities assumed:
Accounts payable(6.1)
Accrued expenses and other current liabilities(6.5)
Other long-term liabilities(0.3)
Estimated purchase price$175.0 

As of May 3, 2026, the purchase price allocation is considered preliminary and is subject to change based on the final value of the net assets acquired. Pro forma information for the SmartPak acquisition has not been provided as the impact was not material to the Company’s consolidated results of operations.

Based on a preliminary allocation, in connection with this acquisition, the Company recorded goodwill of $73.9 million, the majority of which is anticipated to be deductible for tax purposes. The identified intangible assets consisted of $46.0 million of customer relationships, $33.0 million of trademarks, and $9.0 million of product portfolio with an amortization period of 17, 19, and 6 years, respectively. For more information, see Note 6 - Identified Intangible Assets.