BC Partners and PetSmart reached a sales agreement Sunday, leading to the United States' largest private equity deal this year.
Shareholders of the pet supply retailer finally gave in with the offer of the London-based firm BC Partners, acquiring the company for an $8.7-billion deal.
On Sunday, Apollo Global Management based in New York was reported to be the front runner in PetSmart's sales auction, offering a value of $8 billion to the pet supply retailer. Other bidders included the joint efforts of Kohlberg Kravis Roberts & Co.and Clayton Dubilier & Rice. BC Partners winning the deal means the private equity firm did some last-minute moves.
According to a press release by BC Partners, the company will pay $83 per share. It's 39% higher than PetSmart's closing price on July 2, 2014.
“We are pleased to have reached this agreement with BC Partners, which maximizes value for all of our shareholders and best positions for PetSmart to continue to meet the needs of pet parents,” said PetSmart Chairman, Gregory P. Josefowicz.
Following the announcement of the deal unanimously approved by the board, PetSmart's Board of Directors reviewed the company's strategic alternatives to fully utilize the shareholders's value. The transaction is expected to reach its final stage during the first half of 2015.
David K. Lenhardt, PetSmart's President and Chief Executive Officer, said, “This transaction is a testament to the strength of the PetSmart brand and franchise and reflects the dedication and commitment of our 54,000 associates to serving our customers and delivering value for our company and our shareholders.”
According to Raymond Svider, a Managing Partner at BC Partnes, the company is pleased to have the iconic brand and industry leader in the pet supply industry in their “portfolio of investments.”
Considered as the largest pet retailer of services and solutions, PetSmart operates 1,387 stores in the U.S., Canada and Puerto Rico.
