Private equity firm CVC Capital Partners and Canada Pension Plan Investment Board have signed an agreement to acquire the holding company for San Diego-based Petco Animal Supplies Inc. for $4.6 billion.
A joint statement said Luxembourg-headquartered CVC and the Toronto-based pension plan investment board will buy Petco Holdings from its current group of investors, including the equity firms TPG and Leonard Green & Partners, in a deal expected to close in early 2016, subject to customary closing conditions.
Petco, which recently moved into new headquarters in Rancho Bernardo, operates more than 1,400 Petco retail locations across the U.S., Mexico and Puerto Rico, and has a significant e-commerce presence.
“As the North American pet industry continues to grow, Petco is well positioned with a strong brand, differentiated engagement model, and omni-channel strategy,” Petco CEO James Myers said in the statement. “Both CVC and CPPIB have outstanding track records and deep retail experience and resources that will help support our growth initiatives.”
CVC Managing Partner Chris Stadler said Petco is “ideally positioned” to grow and further capitalize on its status as a leading seller of pet supplies and related services. Shane Feeney, managing director with the pension investment board, said the investment “aligns well” with its own strategy to invest in leading retail businesses with strong multi-channel capabilities.
Goldman, Sachs & Co. and J.P. Morgan Securities LLC are acting as financial advisors to Petco, with Barclays, Citigroup and Moelis acting as lead financial advisors to CVC and the pension plan investment board.