- Overview
- Overview
- Investment DateJune 2015
- Lead InvestorBC Partners
- RegionUnited States
- SectorConsumer/ E-commerce
- Percent of Fair Value2%
-
Key Theme
Long-Term Secular Growth
- Visit WebsitePetsmart
$22.4m
Value of Investment
Online and offline pet supplies retailer
Company Description
Investment Thesis
- Attractive pet market tailwinds
- Full range of services offered under one roof
- Strong financial performance and cash flow generation profile
- Experienced management team
Investment Overview
PetSmart is the largest US specialty pet retailer with a strong brand recognition and customer awareness. The company is a trusted retailer for many pet supply vendors and some of the largest brand names in food, which rely on PetSmart to access end customers (in some cases with exclusivity). The Manager believes PetSmart represents a stable and attractive investment opportunity due to the gradual “humanisation” of pets and adoption. The Company helps customers care for their pets through a range of product offerings and services, including training, grooming, boarding, day camp and adoption.
In a transformative 2017 acquisition, PetSmart acquired for $3.4 billion the e-commerce business, Chewy, providing the largest store retailer of pet supplies with exposure to the rapidly growing e-commerce segment of that industry.
In 2019, Chewy completed an IPO on the New York Stock Exchange which initially valued the e-commerce business at approximately $8.8 billion.
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