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Petco Strikes $4.6B Deal with CVC Capital Partners, Canadian Pension Fund



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One year after a consortium led by private-equity firm BC Partners agreed to take rival PetSmart private for more than $8.2 billion, private-equity firm CVC Capital Partners and a Canadian pension fund struck a deal to buy Petco Holdings.

The deal values Petco at approximately $4.6 billion, making this one of the biggest leveraged buyouts in a slow year for such deals. The company’s current private-equity owners, TPG Inc. and Leonard Green & Partners, who took the retailer private in 2006 in a $1.7 billion deal, simultaneously ran a so-called dual-track process in which it pursued both an auction of the company and an initial public offering.

The deal is expected to close in early 2016.

Petco operates more than 1,400 stores in the U.S. and Puerto Rico under the Petco name and Unleashed by Petco brands, and has 13 stores as part of a joint venture in Mexico. In addition, the company’s Pooch Hotels offer day-care, grooming and boarding services.

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