03:16 PM EDT, 08/07/2024 (MT Newswires) -- PetIQ ( PETQ ) has agreed to be acquired by private investment firm Bansk Group in an all-cash deal valued at about $1.5 billion, sending the pet wellness company's shares soaring.

Bansk Group will buy PetIQ ( PETQ ) for $31 per share, representing a roughly 51% premium to the company's Tuesday closing stock price, according to a Wednesday joint statement.

PetIQ ( PETQ ) shares were up nearly 48% in Wednesday late-afternoon trade.

"After a comprehensive assessment of the offer with the assistance of our outside advisers, the board has determined that this transaction represents an attractive outcome for PetIQ ( PETQ ) and our stockholders," PetIQ ( PETQ ) Chief Executive Cord Christensen said. "This transaction provides us with an incredible opportunity to continue to execute on our strategy of providing pet parents convenient access to affordable pet healthcare while accelerating many longer-term growth initiatives."

Once the deal closes, PetIQ's ( PETQ ) common stock will no longer be listed on the Nasdaq. The company will continue to be operated independently by its executive team, according to the statement.

"As longtime investors in the consumer health and wellness space, we believe PetIQ ( PETQ ) has developed a portfolio of uniquely differentiated brands in the very attractive pet health and wellness category," Bansk Group Chairman Bart Becht said.

The deal is expected to close in the fourth quarter, subject to PetIQ ( PETQ ) stockholder approval and other conditions.

Separately, PetIQ ( PETQ ) reported that its second-quarter adjusted earnings jumped to $0.70 a share from $0.46 a year earlier, while net sales rose 4.6% to $328.9 million. Analysts polled by Capital IQ were looking for $0.50 and $330.1 million, respectively.

The company said it has suspended its full-year financial guidance in the light of the Bansk Group deal.

Price: 30.43, Change: +9.86, Percent Change: +47.91