Pet-supply retailer PetSmart Inc. agreed to be bought by a group led by BC Partners Inc. for about US$8.25 billion, in a deal that marks the largest private-equity buyout in the US this year.
The group will pay US$83 a share after trumping rival buyout firm Apollo Global Management in an auction, the Wall Street Journal reported on Sunday.
The deal is supported by Longview Asset Management, which controls about 9 percent of PetSmart shares, the report said.
PetSmart began contemplating a sale this summer amid pressure to do so from shareholders including Longview and activist investor Jana Partners.
The buyout price represents a 39 percent premium to PetSmart’s closing price on July 2, the day before Jana disclosed its stake and urged PetSmart to explore a sale .
Phoenix-based PetSmart, which was founded in 1987, has about 1,350 stores, more than half of which contain full-service veterinary hospitals, according to the report.
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