Petco Goes Private After Being Acquired

Petco has made a significant change in its ownership structure. It has been acquired and is now a private company. The acquisition was led by a private equity firm.

The acquisition was finalized in a deal worth approximately $4.8 billion. Petco's existing shareholders received a payout as part of the deal.

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Petco was acquired for around $4.6 billion by private equity firm CVC Capital Partners and the Canadian Pension Plan Investment Board in a deal that is expected to close early next year.

The sellers, TPG Capital and Leonard Green & Partners, paid $1.8 billion to take Petco private back in 2006. They had filed to return Petco to the public markets, but ultimately agreed to sell after receiving takeover interest.

Petco reported $75 million of net income on nearly $4 billion in revenue for the fiscal year ending January 31. This is compared to $85 million in net income on $3.79 billion for the year-earlier period.

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The company has a strong brand and a significant presence in the fast-growing e-commerce channel, with over 1400 locations across the US, Mexico, and Puerto Rico.

The deal is a significant one, with Petco's buyers paying a premium of around 10x EBITDA, although a source says it will be closer to 9x when new initiatives are annualized.

Leveraged financing for Petco has been committed by several major banks, including Barclays, Citigroup, and Royal Bank of Canada.

The acquisition is expected to close in the early months of 2016, subject to customary closing conditions.

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Petco's journey to becoming a private company began with its initial public offering (IPO) in 1994, which raised $100 million.

The IPO was a significant milestone for the company, marking its transition from a privately held business to a publicly traded entity.

Petco's stock was listed on the NASDAQ exchange under the ticker symbol PETC.

Petco's IPO was a major success, allowing the company to expand its operations and invest in new initiatives.

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The company's market capitalization at the time of its IPO was around $1.5 billion.

Petco's decision to go private was likely influenced by its desire to have more control over its operations and strategy.

The company's private equity owners, including BC Partners and KKR, acquired Petco in 2014 for $4.6 billion.

Petco's private ownership has allowed the company to focus on its core business and invest in new technologies and services.

The company's commitment to its customers and employees has remained a top priority, even as it has navigated the challenges of private ownership.

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