X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN DIEGO-Leonard Green & Partners, LP and Texas Pacific Group are in a deal to acquire Petco Animal Supplies for about $1.8 billion, or $29 per share. Shareholders of the pet-supplies retail giant need to approve the deal, which executives say they expect to close by the fourth quarter.

The $29 is far above Petco’s closing price yesterday of $19.45 on the Nasdaq. However, the company’s 52-week high is $29.88. The transaction would make Petco, which operates about 800 stores across the country, a private company.

Leonard Green and Texas Pacific have both been avid retail buyers as of late. At the beginning of the year Leonard Green bought the 400-store Sports Authority for about $1.3 billion. It also made a bid for the Hollywood Video chain before competitor Movie Gallery stepped in an acquired the company last year. Texas Pacific was part of the joint venture that closed on the Neiman Marcus department-store chain last year for about $5 billion.

Petco posted net earnings of $11 million during its first quarter, down from $17.2 million during the same year-ago period. Same-store sales rose 2.2% for the quarter, which ended April 29, and net sales were $521 million, up 8.6%.

The Petco deal follows a string of deals by private-equity firms to acquire major retailers. Most recently, earlier this month, the Blackstone Group and Bain Capital announced an agreement to buy crafts retailer Michaels Stores and its 1,000 units for $6 billion.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.