Chewy (CHWY) to Acquire Veterinary Platform Modern Animal to Expand Pet Healthcare Ecosystem

Chewy Inc. (NYSE:CHWY) is one of the low-priced stocks to buy with huge upside potential. On April 8, Chewy entered into a definitive agreement to acquire Modern Animal, a technology-driven veterinary platform, marking a significant step in its transition toward a fully integrated pet healthcare ecosystem. The acquisition includes 29 owned clinics, 24/7 virtual care, and a high-retention membership model serving over 100,000 families.

This move immediately scales Chewy Vet Care’s footprint from 18 to 47 locations nationwide, combining in-person care with Chewy’s existing pharmacy and commerce capabilities to create a more connected experience across the pet lifecycle. Financially, the transaction is expected to add over $125 million in annualized run-rate revenue and be accretive to earnings per share within the first year.

While the deal is projected to be EBITDA-dollar neutral on a pro forma basis for FY26, mature Modern Animal clinics boast margins exceeding 20% and revenue per location at double the industry average. Chewy Inc. (NYSE:CHWY) anticipates a clear path to positive EBITDA contribution from these assets starting in 2027, supported by disciplined operations and purpose-built technology. The integration is expected to drive substantial synergies, including an estimated 15% to 20% uplift in net sales per active customer across the veterinary network.

Chewy Inc. (NYSE:CHWY) is involved in the e-commerce business across the US. The company provides pet supplies and medications, pet food and treats, and other pet health products. It is based in Plantation, Florida, and was incorporated in 2010.

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