Date
25 September 2017
PetSmart began exploring a sale earlier this year after pressure from some shareholders and an activist investor. Photo: Bloomberg
PetSmart began exploring a sale earlier this year after pressure from some shareholders and an activist investor. Photo: Bloomberg

PetSmart agrees to US$8.3 bln private-equity buyout

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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CG/RC

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