mFrame Posted December 17, 2014 Share Posted December 17, 2014 PetSmart has been acquired for $8.7 billion by a group of investors led BC Partners, making it the biggest global private equity deal of 2014. PetSmart and other pet retailers have been lagging in the wake of the rise of Amazon and other online giants. There has been a push for change at the company after it reported disappointing first quarter earnings. When news of the buyout circulated, the stock jumped 31 percent in four months but remained 7 percent below the original offer price. "We are very pleased to add PetSmart to our portfolio of investments," said Raymond Svide of BC Partners. "PetSmart is an iconic brand and the category leader in the growing pet retail industry." PetSmart's board of directors unanimously voted to accept the deal. "We are pleased to have reached this agreement with BC Partners, which maximizes value for all of our shareholders and best positions PetSmart to continue to meet the needs of pet parents," said Gregory P. Josefowicz, Chairman of PetSmart. "This transaction represents the successful conclusion of our extensive review of strategic alternatives." The deal will result in a payout of about $83.00 per share. The American Pet Products Association reports the pet industry will see a record year of $59 billion. Read more Link to comment Share on other sites More sharing options...
Bluemoon Posted December 18, 2014 Share Posted December 18, 2014 great find thanks for posting mike. I never in a million years would have guessed the massive chain that put local pet shops out of business would be running into the ground itself. Definitely explains a lot of the changes I've noticed at the storefront over the past year. Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
Makena95GT Posted December 18, 2014 Share Posted December 18, 2014 Hopefully they do a good job in "flipping" the company. Im honestly glad. No more public shareholders to please with every little decision. Woot woot Link to comment Share on other sites More sharing options...
jestep Posted December 18, 2014 Share Posted December 18, 2014 great find thanks for posting mike. I never in a million years would have guessed the massive chain that put local pet shops out of business would be running into the ground itself. Definitely explains a lot of the changes I've noticed at the storefront over the past year. Sent from my iPhone using Tapatalk I didn't look at their financial statements, but I would imagine the overhead on the retail spaces they run is borderline unsustainable on its own. Link to comment Share on other sites More sharing options...
Makena95GT Posted December 18, 2014 Share Posted December 18, 2014 great find thanks for posting mike. I never in a million years would have guessed the massive chain that put local pet shops out of business would be running into the ground itself. Definitely explains a lot of the changes I've noticed at the storefront over the past year. Sent from my iPhone using Tapatalk I didn't look at their financial statements, but I would imagine the overhead on the retail spaces they run is borderline unsustainable on its own. I can say that whats been happening is the original prices have been creeping up every week.. then petsmart will have a "sale" for a ton off but in reality you're just paying the old price, if that makes any sense Link to comment Share on other sites More sharing options...
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