Chewy announced it has entered into a definitive agreement to acquire Modern Animal, a veterinary care provider with 29 clinics, 24/7 virtual care, and a membership-based model, as part of its strategy to build a fully integrated pet healthcare ecosystem.
The acquisition is expected to add more than $125 million in annualized run rate revenue and immediately expand Chewy’s Vet Care footprint from 18 to 47 locations nationwide. The deal is projected to be EBITDA-dollar neutral in 2026, with contributions expected beginning in 2027 as clinics mature.
Modern Animal’s clinics have demonstrated strong unit economics, generating more than twice the industry average revenue per location and achieving EBITDA margins exceeding 20% at maturity. The company’s technology-driven operations and clinical model are expected to complement Chewy’s existing pharmacy, health services, and Vet Care offerings.
Chewy anticipates additional upside through integration, including increased customer engagement, cross-category purchasing, and improved retention. The company estimates these synergies could drive a 15% to 20% increase in net sales per active customer across its veterinary network.
The transaction also strengthens Chewy’s position in the approximately $40 billion veterinary services market, which is growing at about 5% annually. With more than 21 million active customers and an established Autoship and prescription platform, Chewy aims to leverage Modern Animal’s in-person care capabilities to expand its national clinic footprint and deepen customer relationships.
The deal is expected to close in Chewy’s second quarter of fiscal 2026, subject to regulatory approval and customary closing conditions. Chewy also announced a $500 million increase to its existing share repurchase program, reflecting confidence in its long-term growth strategy and cash flow generation.
KEY QUOTES:
“Modern Animal perfectly complements our strategy to become the preeminent end-to-end pet health ecosystem, utilizing both owned and asset-light models. 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.”
Sumit Singh, Chief Executive Officer of Chewy
“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
“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 business almost immediately. Together, we can broaden access to convenient, high-quality veterinary care and deepen relationships with pet parents through a more connected healthcare experience.”
Mita Malhotra, President of Chewy Health
