Petco pet supplies chain sold for $4.6 billion
A customer leaves a Petco store in San Francisco on Nov. 23.
The private-equity owners of Petco Animal Supplies have reached a $4.6 billion deal to sell the retailer to CVC Capital Partners and the Canadian Pension Plan Investment Board, Petco officials announced Monday.
“We are very excited to partner with CVC and CPPIB to further drive our strategic goal of being the trusted partner of choice for pet parents,” said James M. Myers, Petco’s chief executive, in a statement. “As the North American pet industry continues to grow, Petco is well positioned with a strong brand, differentiated engagement model, and omni-channel strategy. Both CVC and CPPIB have outstanding track records and deep retail experience and resources that will help support our growth initiatives.”
Petco, which employs about 650 workers at its Rancho Bernardo headquarters, was founded 50 years ago in San Diego as a mail-order veterinary supply company. Its first store was in La Mesa. The company operates 1,400 locations across the U.S., Mexico and Puerto Rico, including 30 in San Diego County.
A Petco spokeswoman said the company plans to keep its headquarters in San Diego.
CVC, a private equity group, and the Canadian pension fund beat a joint offer from buyout firms KKR & Co. and Hellman & Friedman, as well as a bid by Apollo Global Management, reported the Bloomberg news service, citing unnamed industry sources.
The pet-supplies retailer, which was taken private by TPG Capital and Leonard Green & Partners in a $1.8 billion leveraged buyout in 2006, hired advisers earlier this year to explore options including a sale or taking the company public. Petco filed in August with the U.S. Securities and Exchange for an initial public offering.
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