PRESS ESC TO CLOSE
 

In Largest Private Equity Deal This Year, PetSmart Gets Acquired for $8.7 Billion

Share
PetSmart is a pet store in a parking lot.

PetSmart is getting a new home. BC Partners just acquired the Phoenix-based pet supplier for a whopping $8.7 billion, or $83 a share, making it the largest U.S. private equity deal of this year.

The London-based firm is said to have beat out Apollo Global Management (a rumored front runner) along with a joint offer from KKR and Clayton Dubilier & Rice in an auction process that has been going on for weeks.

“We are very pleased to add PetSmart to our portfolio of investments. PetSmart is an iconic brand and the category leader in the growing pet retail industry. We look forward to working with management to continue growing PetSmart’s business and executing against its recently announced strategic initiatives,” said Raymond Svider, a managing partner at BC Partners, in a statement.

Related: Where New York Dogs Go for Faux Hawks, Fur Dyeing and Everything in Between

This move comes after some investors have pushed the retailer to sell as same-store sales haven’t been too impressive. Last quarter’s sales were flat while sales had fallen the three previous months, something that hadn’t occurred in over a decade, reports Bloomberg. A big reason for the sales decline is the pet retailer has stiff competition from businesses like Amazon.com, which often offer lower prices and more convenience for pet owners.

“We are pleased to have reached this agreement with BC Partners, which maximizes value for all of our shareholders and best positions PetSmart to continue to meet the needs of pet parents,” said Gregory P. Josefowicz, chairman of PetSmart, in a statement.

Related: The Urban Pet’s Zen-Like Store is the Ultimate Destination for the Dog Enthusiast

 

By Andrea Huspeni

Andrea Huspeni is the founder and CEO of This Dog's Life. Her mission it to help dogs live a happier, healthier and longer life. When she isn't working, she spends time with her two dogs, Lola and Milo. She resides in Brooklyn, NY.

All You Need

Shop now
Loading component ...
What My Dog, My Zen Master, Taught Me About Life After My Mom's Passing

What My Dog, My Zen Master, Taught Me About Life After My Mom's Passing

Some of the Most Popular Valentine’s Day Flowers are Toxic to Dogs. Do you Know Which Ones to Avoid?

Some of the Most Popular Valentine’s Day Flowers are Toxic to Dogs. Do you Know Which Ones to Avoid?

What’s Going on With Your Senior Dog: Is it Behavioral or Medical?

What’s Going on With Your Senior Dog: Is it Behavioral or Medical?

The 6 Winter Skin Miracles Your Dog Needs

The 6 Winter Skin Miracles Your Dog Needs