A Canadian ecommerce company with a growing appetite for acquiring niche business-to-consumer ecommerce sites and marketplaces is selling off one of its biggest B2B ecommerce properties.
In November 2021, Emerge Commerce Ltd., a Toronto public company, acquired Retail Store Networks Inc. Retail Store Networks operates the B2B marketplace WholesalePet.com.
Now, to pay down debt, Emerge Commerce has signed a definitive deal to sell WholesalePet.com. to Tiny Ltd., a Canadian investment firm that acquires ecommerce companies.
The deal is expected to close at the end of January. “We are excited to partner with Tiny for the next stage of growth at WholesalePet,” founder Robert Nelson said in a press release. In the announcement, the parties stated that Emerge Commerce signed a definitive agreement to sell WholesalePet.
“Tiny’s long-term oriented approach and experience with marketplace businesses will enable us to continue to improve our platform and best serve our customers for years to come,” said Nelson.
What is WholesalePet.com?
WholesalePet.com is a B2B ecommerce marketplace connecting more than 8,000 independent retail locations with hundreds of independent pet supplies vendors. It offers more than 1 million SKUs. Founded in 2001, WholesalePet.com has facilitated more than $250 million in gross merchandise sales over the last 20 years. The average customer tenure reached 10 years.
Emerge Commerce will use the money from the sale to pay down debt and focus on its other core vertical markets, says CEO Ghassan Halazon. “Consistent with the strategy we laid out in 2023 to prioritize debt paydown by exploring all strategic options available to the company, the sale of WSP marks our most substantial transaction to date, eliminating the majority of our debt, saving us an estimated $1.38M in annual interest expense, and paving the way for a refresh scenario to double down on our profitable grocery and golf businesses, with a focus on driving organic growth in 2024,” he says.
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