Pet Valu Announces Acquisition of Chico, Québec’s Largest Pet Specialty Franchisor

Pet Valu Holdings Ltd., the leading Canadian specialty retailer of pet food and pet-related supplies, today announced its entry into the Québec market with the acquisition of Les Franchises Chico Inc.

Chico is Québec’s largest franchisor of pet specialty stores, with 66 locations across the province. Founded in 1983 by Pierre Charbonneau and Michel Joly, Chico has a long heritage of serving devoted pet lovers in Québec. The brand has been consistently growing its store count and same store sales and in 2021, generated system-wide sales of approximately $79 million and revenue of approximately $7 million.

“Entering Québec marks a key milestone in our mission to be Canada’s preferred pet retailer,” said Richard Maltsbarger, President and Chief Executive Officer of Pet Valu. “The acquisition of Chico is an excellent strategic fit for both companies, as we welcome a great brand with a terrific group of franchisees and loyal customers to the Pet Valu family, with the opportunity to benefit from our scale, infrastructure and franchisee support. We look forward to supporting Chico’s continued growth within the province and serving Québec’s devoted pet lovers.”

Similar to Pet Valu, Chico’s stores provide engaging retail experiences, with a focus on expert advice and premium quality products, all within local, small-format locations averaging 3,000 square feet.

Pet Valu plans to operate Chico as a separate subsidiary led by a dedicated Montréal-based management team, with founders Pierre Charbonneau and Michel Joly continuing to be active in the business. Consistent with its multi-banner strategy in other provinces, the company intends to preserve the Chico banner in Québec.

“I have long envisioned seeing Chico expand across Québec, to provide a place for discerning pet owners to seek expert advice and high-quality products from dedicated, neighborhood-based franchise owners,” said Pierre Charbonneau, Founder and President of Chico. “Pet Valu is the ideal partner to support Chico’s continued growth across the province, given the correlation to our values and a strong track record fostering close relationships with their franchise network across Canada.”

The acquisition closed late last month, was funded with cash on hand and is expected to be immediately accretive to Pet Valu’s Adjusted Net Income.