Chewy announces latest acquisition

Chewy, Inc, announced earlier this week that it has entered into a definitive agreement with Modern Animal, Inc, a technology-forward veterinary platform with 29 owned clinics, 24/7 virtual care, and a high-retention membership model.

“We’re excited to welcome Modern Animal to Chewy as we advance our vision for the future of pet health care,” said Mita Malhotra, president of Chewy Health, in an organizational release.¹. “The joining of Modern Animal’s best-in-class operating systems and clinical expertise with Chewy’s unparalleled customer acquisition and engagement engines creates an industry-leading, high ROI [return on investment] business almost immediately. Together, we can broaden access to convenient, high-quality veterinary care and deepen relationships with pet parents through a more connected health care experience.”

According to the organizational release, Chewy’s acquisition of Modern Animal is expected to add over $125 million in annualized run rate revenue, which would also expand Chewy Vet Care from 18 clinics to 47 nationwide instantly, plus be EBITDA dollar neutral in 2026 on a pro forma basis. Along with this, the clinics in the Modern Animal network historically matured over 2 to 4 years with a clear line of EBITDA-dollar contribution beginning in 2027.¹

Chewy is also expecting the deal to thrive beyond clinic ownership. By integrating Modern Animal’s advanced technology into its existing Chewy Vet Care network, the company aims to optimize appointment types and drive higher revenue per visit. Additionally, by integrating Modern Animal’s loyal members, the company is anticipating a 15% to 20% boost in spending per customer through increased pharmacy and retail purchases.¹

“Modern Animal perfectly complements our strategy to become the preeminent end-to-end pet health ecosystem, utilizing both owned and asset-light models,” said Chewy CEO Sumit Singh.¹ “We are acquiring a high-growth platform with positive 4-wall EBITDA at the clinic level, a best-in-class operating engine, and over 100,000 member families. This deal accelerates our Vet Care expansion, drives higher long-term customer value, and creates a clear competitive moat in the industry.”

Currently, the transaction is still pending. The previously issued finance guidance by Chewy remains unchanged, as the transaction is subject to customary closing conditions, including regular approval. According to the release, Chewy will be providing updated guidance that is consistent with the company’s normal practice in the reporting period following the closing, which is expected to occur in Chewy’s second quarter of fiscal year 2026. After signing the definitive agreement, Chewy’s board of directors authorized a $500 million increase to the company’s existing share repurchase program. No other changes were made to the program’s terms, and it has no expiration date and can be modified, suspended, or terminated at any time.

“Since inception, our focus has been on prioritizing the human experience of both accessing and delivering care. Chewy shares that vision, and we are committed to building the future of veterinary care together, through medical excellence, expanded access and exceptional experiences for both pet parents and the veterinary teams that support them,” Steven Eidelman, founder and chief executive officer of Modern Animal stated.¹

Reference

1. Chewy to acquire Modern Animal accelerating evolution to a fully integrated healthcare ecosystem. News release. Chewy Inc. April 8, 2026. Accessed April 10, 2026. https://www.businesswire.com/news/home/20260408567488/en/Chewy-to-Acquire-Modern-Animal-Accelerating-Evolution-to-a-Fully-Integrated-Healthcare-Ecosystem