Canada Pension Close to $4.7 Billion Deal to Buy Petco: Report

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The Canadian Pension Plan Investment Board, along with a private equity partner, are close to buying pet supply retailer Petco for $4.7 billion, according to a report from the New York Times.

From the Times:

Petco is near an agreement to be acquired by CVC Capital Partners and the Canadian Pension Plan Investment Board for $4.7 billion, a person briefed on the matter said on Sunday.

The deal is likely to be announced on Monday, said the person, who spoke on the condition of anonymity because the discussions were still private.

Petco Holdings, based in San Diego, filed to go public in August, but was simultaneously pursuing a sale. The company’s revenue had increased 12 percent in the 26 weeks through Aug. 1 from the same period a year ago, the filing showed, while net income jumped about 43 percent, according to the company’s filing. The company has more than $2 billion in debt, the filing showed.

Representatives from CVC Capital Partners, Canadian Pension Plan and Petco were not immediately available for comment. Representatives from TPG and Leonard Green declined to comment.

It wouldn’t be the first pet supply retailer in the portfolio of a Canadian pension; last year, the Quebec pension Caisse was part of a group of investors who bought PetSmart.

 

Photo by Mike Mozart via Flickr CC License

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