Zoetis expands animal nutrition business with acquisition of Platinum Performance
Equine products, including vaccines, de-wormers, sedatives, and analgesics, generated $186m in sales for Zoetis in 2018 (approximately 3% of total annual revenue for the company). With the acquisition of Platinum Performance, Zoetis will be able to diversify its portfolio with the addition of equine nutritional products. As part of the deal, Zoetis will also be acquiring Platinum Performance's petcare supplement formulations which includes pet supplements ranging from cognitive health and digestion support to athletic performance and joint health improvement.
"The expansion in nutritionals aligns well with Zoetis’ increasing focus on health and wellness as part of the continuum of animal care, which spans from prediction and prevention to detection and treatment of disease," said Zoetis in a statement.
Platinum Performance was founded in 1996 by Dr Doug Herthel, DVM, and his son Mark Herthel, both equine veterinarians and horse owners. The California-based company began by making dietary supplements for horses including its flagship products Platinum Performance Equine (containing omega-3 fatty acids, antioxidants, vitamins, and trace minerals) and Platinum Performance CJ, a joint health nutritional product containing several ingredients such as branded pet supplement Cosequin ASU, hylauronic acid, cetyl-myristoleate, and glucosamine for joint health.
The addition of Zoetis’ resources and capabilities to Platinum Performance is expected to increase the number of research trials and enhance nutrition education within the animal nutrition market. Platinum Performance will operate as a wholly owned subsidiary of Zoetis, and continue doing business from its Buellton, Calif., headquarters where it has a staff of 80 employees.
“With this acquisition, Zoetis gains an innovative leader and premium brand in the market for nutritionals and wellness solutions that cater to horses, dogs, and cats. We believe Zoetis will be able to expand the Platinum equine business through our U.S. field force, accelerate the growth of its petcare product formulas with veterinarians and pet owners through our digital marketing capabilities, and evaluate international expansion opportunities over the long term," said Kristin Peck, executive vice president and group president, US operations, business development and strategy for Zoetis.
Zoetis expects to complete the acquisition in the third quarter of this year.
Market for animal joint health supplements
Joint health supplements have been among the top selling condition-specific products in the pet nutrition space, according to a February 2015 report by Packaged Facts. And according to a 2017 article from this publication, joint health supplements for horses representa more than 50% of the roughly $2bn pet health supplement market and 34% of those sales were classified as joint health supplements.
Platinum Performance built its business selling directly to veterinarians and pet owners through its e-commerce model. With support from Zoetis, the company will now be able to reach an international market, said Platinum Performance president, Mark Herthel.
“With our exceptional brand and proven product formulas placed in Zoetis’ commercial model, we should be able to increase the company’s scale with additional global access to veterinarians and pet owners, allowing us to continue to fulfill our family’s vision for the field of scientific wellness in animal care," he said.
