PHOENIX—PetSmart Inc., the largest specialty pet retailer in North America, said Sunday afternoon it had agreed to be taken private for $83 per share in cash, or approximately $8.7 billion including the assumption of debt. The consortium of buyers is led by London-based private equity firm BC Partners Inc. and also includes La Caisse de dépôt et placement du Québec and StepStone.

The largest private equity buyout of 2014 thus far, the sale comes after an auction process following a review of strategic alternatives that began last summer. At that time, activist shareholder Jana Partners disclosed a 9.9% stake in the Phoenix-based retailer and began pushing its board to explore a sale.

The sale price of $83 per share reflects a 39% premium on the closing price on July 2, the day before Jana disclosed its stake. Earlier this month, published reports said that the winning bidder was likely to be Apollo Global Management, which would have paid $7.72 billion. Bloomberg reported Sunday that a final offer from the BC-led group topped all the others.

PetSmart said Sunday that Longview Asset Management, the investment firm which owns or manages approximately 9% of PetSmart's outstanding shares, has committed to vote in favor of the sale. James A. Star, Longview's president and CEO, calls the sale “an excellent outcome for PetSmart shareholders; it delivers significant and immediate value while best positioning the company for the future.” Longview also advocated a sale, coming out in favor of one a couple of weeks after Jana.    

Similarly, David K. Lenhardt, PetSmart's president and CEO, says, “This transaction is a testament to the strength of the PetSmart brand and franchise and reflects the dedication and commitment of our 54,000 associates to serving our customers and delivering value for our company and our shareholders. The consortium led by BC Partners will be an excellent partner for PetSmart as we continue to implement our strategic plan to capitalize on our opportunities for growth and meet the needs of pet parents.” Third-quarter income for PetSmart was flat after declining in the previous quarter for the first time in years, a result that analysts have blamed on competition from Walmart and Amazon.

J.P. Morgan Securities LLC is serving as the exclusive financial advisor to PetSmart, while Wachtell, Lipton, Rosen & Katz is serving as the company's legal advisor. BC Partners and its consortium investors were advised by Simpson Thacher & Bartlett LLP and Ernst & Young. Longview was represented by Skadden, Arps, Slate, Meagher & Flom.

Citigroup, Nomura, Jefferies, Barclays and Deutsche Bank have underwritten the debt package to finance the acquisition, which is expected to close in the first half of 2015. PetSmart operates more than 1,350 stores in the US, Canada and Puerto Rico and 201 PetSmart PetHoel in-store boarding facilities.