Chewy announced it will acquire Modern Animal, a technology‑forward veterinary platform that operates 29 owned clinics and offers 24/7 virtual care. The deal will increase Chewy’s clinic footprint from 18 to 47 locations nationwide and is expected to add more than $125 million in annualized run‑rate revenue to the company’s high‑margin veterinary services segment.
Modern Animal’s clinics generate revenue more than twice the industry average and maintain EBITDA margins exceeding 20% for mature locations. The acquisition complements Chewy’s existing Chewy Vet Care network, which currently operates 18 clinics, and brings a membership model that serves over 100,000 families. The combined network will provide a broader geographic reach and a stronger platform for cross‑sell opportunities to Chewy’s large e‑commerce customer base.
The transaction is part of Chewy’s strategy to build a fully integrated pet‑health ecosystem that blends e‑commerce, subscription services and in‑person veterinary care. By adding Modern Animal’s clinics, Chewy accelerates its goal of reaching 20 veterinary locations by year‑end and expands its 24/7 virtual care offering, thereby strengthening its competitive moat against Amazon and Walmart.
Financially, the acquisition is projected to be EBITDA‑dollar neutral in 2026 and accretive to earnings per share in 2027. Chewy’s board has increased its share repurchase program by $500 million, underscoring confidence in the long‑term value of the expanded veterinary business. Expected synergies include shared technology platforms, consolidated supply chains and cross‑promotion of Chewy’s subscription services to new clinic customers.
Sumit Singh, Chewy’s CEO, said the deal “perfectly complements our strategy to become the preeminent end‑to‑end pet health ecosystem, utilizing both owned and asset‑light models.” Steven Eidelman, Modern Animal’s founder and CEO, added that the partnership “shares our vision for exceptional experiences for pet parents and veterinary teams.”
The acquisition is expected to close in the second quarter of Chewy’s fiscal year 2026, subject to customary regulatory approvals and other closing conditions. The deal positions Chewy as a leading integrated provider of pet health services, combining its e‑commerce strength with a growing network of high‑margin veterinary clinics.
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