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PetSmart is a leading omnichannel animal seller in North America, offering a comprehensive variety of animal product or services throughout more than 1,660 shops in the United States, Canada, and Puerto Rico
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Apollo Fund financial investment highlights the robust basics of PetSmart’s business and resistant efficiency throughout financial cycles
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BC Partners and its co-investors to receive partial liquidity while preserving bulk ownership and control of the Board of PetSmart
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Apollo will sign up with BC Partners, as it continues to make use of its deep sector understanding and strong operating abilities, to support PetSmart’s management to continue providing leading product or services to its more than 62 million commitment members
PHOENIX and NEW YORK CITY, July 24, 2023 (WORLD NEWSWIRE) — PetSmart (or “the Company”), a leading omnichannel animal seller in North America, revealed today that funds handled by affiliates of Apollo (NYSE: APO) have actually participated in a conclusive contract to make a tactical equity financial investment in the Company. BC Partners, together with co-investors consisting of GIC and the PetSmart management group, will stay the bulk investor of PetSmart and maintain control of the Board.
The tactical financial investment by the Apollo Funds verifies PetSmart’s strong basics and continued development chance, as the Company drives functional quality throughout its store network and develops a more comprehensive suite of product or services for animals and animal moms and dads. The Apollo and BC Partners groups continue to see considerable opportunities ahead, driven by PetSmart’s development strategies and a market that continues to be a long-lasting net grower with increasing pet ownership and greater spend per animal. PetSmart is likewise distinguished from online-only peers thanks to a broad variety of in-person grooming, training, and veterinary services, along with exclusive brand names and line of product.
BC Partners initially purchased PetSmart in 2015, leading a group of financiers to obtain the Company in a public-to-private deal. The financial investment thesis, which continues to apply today, was underpinned by the structural development in pet ownership, the humanization of animals, and an increasing concentrate on animal health. PetSmart’s strong market position, robust success, and strong capital generation strengthens its development technique and the strength of the business and market.
Under BC Partners ownership, PetSmart and its management group have actually increased earnings by more than 40%, while buying partners and industry-leading animal care. The Company’s dedication to constant financial investment in knowing and expert advancement for its partners makes sure a happy and safe workplace, while providing the greatest requirement of animal care. BC Partners’ owner-operator frame of mind and close, collective relationship with PetSmart management has actually assisted guide tactical capital expense, consisting of in digital and supply chain advancement, allowing the Company to provide considerable development in income and success, with significant contribution originating from omnichannel sales.
“We are delighted to welcome Apollo as a strategic partner – affirming our growth and the strength of our associates’ commitment to doing anything for pets,” said J.K. Symancyk, President and CEO of PetSmart. “The combined expertise of BC Partners and Apollo enables even greater value creation opportunities as we embark on the next stage of growth for the business. We are grateful for the continued support of BC Partners, who have been our trusted partner for over eight years and look forward to working with the team at Apollo who bring the highest levels of expertise and whose vision for PetSmart aligns with our own.”
Apollo Partner Andrew Jhawar said, “PetSmart is an incredible, highly differentiated business in an industry that continues to see strong, sustainable growth across both pet ownership and pet care. We are big believers in PetSmart’s management team and store associates, as well as the Company’s growth strategy, operating model, and historical resiliency throughout market cycles, which gave us strong conviction to make this strategic investment alongside BC Partners, its co-investors and management. We are pleased to support PetSmart’s continued success as a meaningful shareholder moving forward, where we will utilize our demonstrated historical experience as a highly successful investor in the consumer, grocery, and retail sectors.”
Apollo Partner Salim Hirji said, “We are excited to be making this investment in PetSmart, an industry leader providing a wide breadth of products and services to pets and pet parents in communities across North America. We look forward to working with and supporting the Company’s management team and store associates as PetSmart embarks on its next phase of growth.”
Raymond Svider, Chairman of BC Partners, said: “We are in the midst of an incredible journey, which we are pleased to share with the entire PetSmart team. Our conviction in this business, close partnership with management, and the acumen of our investment and portfolio operations team have achieved a flagship investment for the firm, our limited partners, and all stakeholders. BC Partners has a long history of working in partnership with the Apollo team and we welcome the opportunity to do so again as we support PetSmart in the next stage of its growth.”
The deal is presently anticipated to close in the 4th quarter of 2023, based on popular closing conditions and regulative approvals. Terms of the deal were not divulged.
For BC Partners, JP Morgan acted as monetary consultant and Kirkland & Ellis LLP acted as legal consultants. UBS Investment Bank acted as monetary consultant to the Apollo Funds and Simpson Thatcher & Bartlett LLP acted as legal consultants.
Media Contacts
Apollo
Noah Gunn
Global Head of Investor Relations
(212) 822-0540
[email protected]
Joanna Rose
Global Head of Corporate Communications
(212) 822-0491
[email protected]
BC Partners
Simren Priestley, Head of Communications
E: [email protected]
T: +44 20 7009 4722
PetSmart
Rob Litt, VP Corporate Communications
E: [email protected]
T: 1-763-670-1454
About Apollo
Apollo is a high-growth, worldwide alternative property supervisor. In our property management business, we look for to supply our customers excess return at every point along the risk-reward spectrum from financial investment grade to personal equity with a concentrate on 3 investing techniques: yield, hybrid, and equity. For more than 3 years, our investing knowledge throughout our completely incorporated platform has actually served the monetary return requirements of our customers and offered businesses with ingenious capital services for development. Through Athene, our retirement services business, we focus on assisting customers attain monetary security by offering a suite of retirement cost savings items and functioning as an options supplier to organizations. Our client, imaginative, and educated method to investing aligns our customers, businesses we purchase, our workers, and the neighborhoods we affect, to broaden chance and attain positive results. As of March 31, 2023, Apollo had roughly $598 billion of possessions under management. To learn more, please check out www.apollo.com.
About BC Partners
BC Partners is a leading financial investment company with over €40 billion in possessions under management throughout personal equity, personal financial obligation, and property techniques. Established in 1986, BC Partners has actually played an active function for over 3 years in establishing the European buy-out market. Today BC Partners incorporated transatlantic financial investment groups work from workplaces in Europe and North America and are lined up throughout our 4 core sectors: TMT, Healthcare, Services & Industrials, and Consumer. Since its structure, BC Partners has actually finished over 127 personal equity financial investments in business with an overall enterprise worth of over €160 billion and is presently investing its l lth personal equity buyout fund.
For more details, check out www.bcpartners.com
About PetSmart
PetSmart is the leading omnichannel animal seller offering items, services and services for the life time requirements of animals. At PetSmart, we enjoy animals and our company believe animals make us much better individuals. Every day with every connection, PetSmart’s enthusiastic partners help bring pet moms and dads better to their animals so together they can live more satisfied lives. This vision effects whatever we provide for our clients, the method we support our partners and how we return to our neighborhoods.
PetSmart runs over 1,660 animal shops in the United States, Canada and Puerto Rico, along with more than 200 in-store PetSmart PetsHotel® dog and cat boarding centers. We supply a broad variety of competitively priced animal food and items, along with services such as dog training, animal grooming, animal boarding, PetSmart Doggie Day Camp™ and animal adoption.
PetSmart, PetSmart Charities® and PetSmart Charities® of Canada deal with almost 4,000 animal well-being companies to bring adoptable animals into shops so they have the very best opportunity possible of discovering a permanently home. Through this in-store adoption program and other signature occasions, PetSmart has actually helped with over 10 million adoptions, more than any other brick-and-mortar organization.
