Private equity firm Irving Place Capital reported yesterday that it has agreed to acquire Pet Supplies “Plus,” a Farmington Hills, Mich.-based pet specialty retailer. The transaction is expected to close in the third quarter of 2010.

Pet Supplies “Plus” operates 240 franchised stores in 22 U.S. states, primarily in the Midwest, Southeast and Northeast. Irving Place Capital, which is based in New York City, will be investing in partnership with Pet Supplies “Plus” CEO Harvey Solway, COO Dominic Buccellato and CFO Richard Valade.

Following the transaction, 92 stores will be converted to company-operated stores, with the remaining stores continuing to operate as franchises. The deal also includes the acquisition of a distribution business that supplies pet food and other products exclusively to Pet Supplies “Plus” stores.

Irving Place Capital predominately deals in retail and consumer products investments. Some of its investments have included Aeropostale, New York & Co., The Vitamin Shoppe, Seven for All Mankind and Stuart Weitzman.

“Irving Place Capital’s experience partnering with management and its strong track record working with growth-oriented consumer and retail companies made the firm the right private equity partner for PSP,” Solway said. “We believe IPC’s relevant expertise and substantial capital support will be critical during this exciting time for the company as we execute against our growth strategy.”

Rick Perkal, a senior managing director for Irving Place Capital, said Pet Supplies “Plus” is ideally positioned to capitalize on growth opportunities through new store rollouts and opportunistic franchise acquisitions.

“Pet Supplies ‘Plus’ is a highly successful, regionally focused specialty retailer operating in a stable and attractive segment of the consumer economy that has demonstrated consistent growth throughout the recent economic downturn,” Perkal said. <HOME>