Petco’s parent company, Petco Holdings Inc. has apparently struck a deal with private-equity firm CVC Capital Partners Ltd. and a Canadian pension to buy Petco for around $4.6 billion.
The Wall Street Journal had reported Sunday that the companies and the fund were close to a deal and reported the deal earlier today.
Petco, which is already owned by private-equity firms TPG Inc. and Leonard Green & Partners L.P., ran a so-called dual-track process in which it pursued both an auction of the company and an initial public offering simultaneously.
With the IPO market under pressure after some recent share sales stumbled, TPG and Leonard Green ultimately opted for the sale to CVC and Canada Pension Plan Investment Board. The deal is expected to close in early 2016.
Petco’s current private-equity owners took the retailer private in 2006 in a $1.7 billion deal. If you recall, Petco struck a deal to purchase Drs. Foster & Smith, the parent company of LiveAquaria, around this same time in late 2014.
[via Wall Street Journal]