PetSmart attracts investment from PE firm Apollo
- Richard Collings, author of Axios Pro: Retail Deals
Illustration: Aïda Amer/Axios
PetSmart has agreed to sell a minority stake to private equity firm Apollo, the Phoenix-based pet retailer announced on Monday.
Why it matters: Per Bloomberg, PE firm BC Partners sold part of its stake generating a 3x return on its original investment after shelving plans to take the retailer public last year.
Details: Apollo will join BC Partners, GIC, and PetSmart's management as an owner. The deal is expected to close in Q4, according to the announcement.
- BC Partners, GIC and management, however, will remain majority owners and retain control of the board.
Between the lines: Increasing pet ownership broadly and PetSmart's physical locations offering services such as grooming, training, and veterinary care specifically will continue to drive the business forward, per the announcement.
Catch up fast: BC Partners first invested in PetSmart in 2015. Since then the retailer increased its revenue by 40%.
- During that time the PE-backed retailer notably acquired and then split off the e-commerce unit Chewy.
BC Partners did not immediately respond to a request for comment confirming the return on its investment.