PetSmart sells itself to investors for $8.7 billion

Peter Weber, The Week US's avatar
By
Last updated
PetSmart sells itself to investors for $8.7 billion
(Image credit: CC by: Mike Mozart)

On Sunday, PetSmart agreed to sell itself to BC Partners for about $8.7 billion, in the biggest leveraged buyout of an active year. The purchase price, about $83 a share, is almost 7 percent higher than PetSmart's closing price on Wall Street last Friday, and 39 percent higher than in early July, after activist investor Jana Partners disclosed a stake in the company. PetSmart has some 1,300 pet stores in the United States, Canada, and Puerto Rico, and investors say it was a tempting target because of its healthy cash flow, low debt, and the growth of the pet supply sector.

The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

Join more than 350,000 subscribers and keep yourself informed with a selection of The Week’s most interesting, enlightening and entertaining stories - plus daily puzzles.

Join more than 350,000 subscribers and keep yourself informed with a selection of The Week’s most interesting, enlightening and entertaining stories - plus daily puzzles.

Sign up
Explore More
Peter Weber, The Week US
Peter Weber, The Week US

Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.