PetSmart and Chewy.com will soon operate as separate companies, following a recapitalization plan, according to multiple reports. PetSmart acquired the online pet retailer in 2017.
A group led by private equity firm BC Partners, which acquired PetSmart in 2015, “plans to recapitalize PetSmart with $1.3 billion of equity and $4.65 billion of debt raised from institutional money managers, according to credit grading firms and documents released to investors,” Bloomberg reported.
In a press release about its private notes offering, PetSmart officials said the company “intends to distribute, directly or indirectly, all shares of Chewy Inc. common stock currently held by PetSmart and its subsidiaries (the ‘Chewy Distribution’). Following completion of the Chewy Distribution, PetSmart will not own any shares of Chewy common stock. Accordingly, neither Chewy nor any subsidiary of Chewy will be a subsidiary of PetSmart.”
Update (Nov. 2, 2020): PetSmart Abandons Plan Tied to Split from Chewy
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