BC Partners Set to Take PetSmart Private in $8.7B Mega Deal
December 16, 2014
In the largest announced U.S. PE buyout of the year, a group led by BC Partners has agreed to take PetSmart (NASDAQ: PETM) private for $83 per share, valuing the company at approximately $8.7 billion. The transaction represents a nearly 39% premium over PetSmart's closing share price on July 2, the day before activist hedge fund Jana Partners disclosed it had taken a nearly 10% stake in the company and intended to spur management to consider selling the business. The deal also represents a 9.1x multiple of PetSmart's adjusted EBITDA for the 12 months that ended November 2.
Employing roughly 54,000 associates and operating nearly 1,400 stores, the company offers products and services that include pet food, dog training and pet grooming, as well as in-store day care and adoption services.