Petco Animal Supplies has been acquired by CVC Capital Partners and Canada Pension Plan Investment Board in a $4.6 billion deal. The acquisition is expected to close in early 2016.
Petco is a leading specialty retailer of premium pet food, supplies and services. The company operates more than 1,400 locations across the US, Mexico and Puerto Rico.
“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 Petco CEO James M. Myers, in a statement. “As the North American pet industry continues to grow, Petco is well positioned with a strong brand, differentiated engagement model, and omnichannel strategy. Both CVC and CPPIB have outstanding track records and deep retail experience and resources that will help support our growth initiatives.”
“Petco is clearly a leader in the industry, with strong further growth potential and a talented leadership team,” said Chris Stadler, CVC Managing Partner, in a statement. “The pet category is a growing and dynamic space within which we believe Petco is ideally positioned to further enhance its leadership position. We look forward to working with our outstanding partners at CPPIB to support the company’s growth as it continues to execute its strategy and plans to capitalize on promising market opportunities.”
“We are so proud to have been part of Petco’s journey over a span of 16 years,” said Carrie Wheeler, Partner of TPG, in a statement. “Petco has delivered incredible growth and results over our ownership period, and has positioned itself as a leading retailer in the pet industry that continues to define the category by finding new and innovative ways to serve its customers. We cannot thank the Petco team enough for their partnership, and wish them great success in this next chapter.”
Petco has been purchased and sold by TPG Capital and Leonard Green & Partners twice. The first time was in 2000 when the companies purchased Petco for $600 million, and then took the company public in 2002. Four years later, in 2006, TPG Capital and Leonard Green & Partners purchased Petco for a second time for $1.7 billion.