PetSmart to Be Owned by Private Equity Firms

Pet owners may notice some changes to their local PetSmart store soon. BC Partners and a few other private equity firms offered $8.7 billion for control of the retail chain's assets. PetSmart accepted. It was the largest private equity deal of the year so far. The second largest, Blackstone Group's acquisition of Gates Global, was worth little more than half of it.

PetSmart is said to have acted under the pressure of its shareholders, some of which will gain millions of dollars as part of the deal. Those shareholders will probably approve the acquisition soon, before the deal is finalized. In the meantime, PetSmart (PETM) stock is climbing.

Cutting costs and revamping online sales are some of the goals BC executives will work towards in the future, but they say the company is already prepared for growth, noting a growing pet product industry. PetSmart board members also recognized the success and potential of their company, thanking their employees for having a role in it.

Pet Smart sells pets, pet food, toys and accessories and offers veterinary and grooming services. It competes with stores like Wal Mart, Target and Amazon in the retail pet supplies market and employs around 54,000 people working at 1,387 stores. There is no indication of what specific changes PetSmart's new owners plan to make.