Mad Paws Holdings has completed the divestment of its Pet Chemist business and announced the resignation of Executive Director Howard Humphreys, advancing its proposed acquisition by Rover Group.
- Pet Chemist divestment completed with transitional services agreement
- Full repayment of $2 million debt facility using divestment proceeds
- Closures of Sash and Waggly e-commerce businesses progressing as planned
- Executive Director Howard Humphreys resigns following divestment
- Scheme meeting and shareholder vote expected in October 2025
Pet Chemist Divestment Completed
Mad Paws Holdings Limited (ASX – MPA) has taken a significant step forward in its strategic transition by completing the divestment of its Pet Chemist business. This move is a key condition in the binding Scheme Implementation Deed with Rover Group, Inc., which aims for Rover to acquire 100% of Mad Paws’ shares through a scheme of arrangement. The sale includes expected adjustments related to net debt and working capital, with final figures to be confirmed in the coming months. Mad Paws will continue to support Pet Chemist through transitional services for an initial three-month period post-completion, ensuring operational continuity during the handover.
Debt Repayment and E-Commerce Closures
Proceeds from the Pet Chemist divestment have been used to fully repay Mad Paws’ existing $2 million debt facility with Partners for Growth VII, L.P., strengthening the company’s balance sheet ahead of the proposed acquisition. Meanwhile, the company’s other e-commerce ventures, Sash and Waggly, have ceased operations as planned, with closure and deregistration processes underway. These steps collectively satisfy the conditions tied to the Scheme, clearing the path for the next phases of the transaction.
Leadership Changes
In line with the divestment, Executive Director Howard Humphreys, who has led Pet Chemist since its acquisition by Mad Paws in April 2022, has resigned from the board effective 29 August 2025. Humphreys will continue as CEO of Pet Chemist under its new ownership. The Mad Paws board has publicly acknowledged his contributions during his tenure, marking a clear leadership transition as the company prepares for integration with Rover Group.
Scheme Progress and Shareholder Engagement
Mad Paws anticipates dispatching the Scheme booklet and notice of meeting to shareholders in September, following regulatory review and court hearings. The Scheme meeting is expected to take place in October 2025, where shareholders will vote on the proposed acquisition. Subject to shareholder approval and satisfaction of remaining conditions, the Scheme is projected to be implemented in November 2025. Mad Paws has emphasized that shareholders are not required to take any immediate action and will be kept informed of any changes to the timetable.
Looking Ahead
This divestment and leadership reshuffle mark pivotal milestones in Mad Paws’ evolution, positioning the company for integration into Rover Group’s broader pet services ecosystem. The coming months will be critical as shareholders weigh the proposed acquisition and the company navigates final regulatory and contractual steps.
Bottom Line?
Mad Paws’ strategic divestment and leadership changes set the stage for a decisive shareholder vote on its future under Rover Group.
Questions in the middle?
- What will be the final purchase price adjustments for the Pet Chemist divestment?
- How will the resignation of Howard Humphreys affect Mad Paws’ operational stability?
- What are the implications for Mad Paws’ remaining e-commerce assets post-acquisition?