Once a major home furnishings retailer and now an online-only brand, Linens ‘N Things has a new owner. Before the chain’s 2008 bankruptcy it ...
Petco agrees to be sold for $1.8 billion
Multi-channel retailer Petco Animal Supplies has agreed to be acquired for about $1.8 billion in cash plus the assumption of debt by two private equity investment firms, Leonard Green & Partners L.P. and Texas Pacific Group, Petco said today.
Chief Technology Editor
Petco Animal Supplies Inc. has announced it has entered into a definitive agreement to be acquired by two private equity investment firms, Leonard Green & Partners L.P. and Texas Pacific Group, for $29 per share in cash. The total value of the transaction, including assumed debt, is approximately $1.8 billion.
In addition to its more than 800 stores across the country, Petco operates an e-commerce site, Petco.com. Online sales for Petco, No. 170 in the Internet Retailer Top 500 Guide to Retail Web Sites, were flat last year. The company registered $43.7 million in web sales in 2005, a 1.1% increase over $43.3 million in 2004, according to Internet Retailer estimates.
“Upon completion of the transaction, Petco will be a private company that will have greater flexibility to accomplish its long-term plans, which, we believe, will be favorable for the company’s associates, suppliers and customers,” says CEO James M. Myers. “Texas Pacific Group and Leonard Green & Partners have deep experience investing in the retail sector and we look forward to working closely with them.”
The acquisition, subject to approval by Petco stockholders, likely will be completed by the fourth quarter of 2006, the company says.