May 2, 2007, 12:00 AM

PetsUnited and Drs. Foster & Smith find new homes for pet supply sites

It’s been an active week in the online pet supplies market with PetsUnited acquiring State Line Tack from PetSmart. Drs. Foster & Smith also is acquiring the pet supplies business of Neeps Inc., which operates more than a dozen niche e-commerce sites.

Mark Brohan

Research Director

It’s been an active week for acquisitions in the online pet supplies market. On May 1 PetSmart Inc., No. 156 in the Internet Retailer Top 500 Guide, sold its State Line Tack equine assets to PetsUnited, No. 238 in the Internet Retailer Top 500 Guide.

Drs. Foster & Smith Inc. also is acquiring the pet supplies business of Neeps Inc., No. 498 in the Internet Retailer Top 500 Guide.

Terms of the PetsUnited and Drs. Foster & Smith deals were not disclosed. PetsUnited, which operates specialty sites such as Dog.com, Fish.com and Horse.com, is acquiring the inventory, customer lists and other assets of State Line Tack, a PetSmart business unit and a direct marketer of equine supplies.

PetSmart announced plans to exit the equine market in February. PetsUnited will move the State Line Tack online and catalog business from Brockport, N.Y., to its Hazelton, Pa., facility within the next 60 days, the company says.

Drs. Foster & Smith, No. 83 in the Internet Retailer Top 500 Guide, is acquiring Neeps, which operates more than a dozen e-commerce sites, to help build up more niche opportunities.

The sale enables Drs. Foster & Smith to add more than 600 products its small pet product line. Internet marketing and analysis manager Gordon Magee will speak at the Internet Retailer Conference & Exhibition, June 4-7 in San Jose in a session entitled New Age Marketing Tools: Is Today`s Hype Tomorrow`s Help? .

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