PetSmart has signed a definitive agreement to acquire online pet retailer Chewy.
PetSmart stated that the acquisition will help in accelerating its strategy of becoming a convenient, best-in-class pet retailer, as well as enhance their in-store and online capabilities in North America.
The acquisition is subject to the fulfillment of customary regulatory approvals, and expected to be completed by the end of PetSmart’s second fiscal quarter this year.
PetSmart president and CEO Michael Massey said: “PetSmart strives to be the trusted partner to pet parents and pets in every moment of their lives. We are focused on improving our customers’ experience in-store and online as we continue to execute against our long-term strategic initiatives.
“Chewy’s high-touch customer e-commerce service model and culture centered around a love of pets is the ideal complement to PetSmart’s store footprint and diverse offerings.
“Together, PetSmart and Chewy will provide the most convenient customer experience to a wider base of pet parents across every channel.”
Chewy co-founder and CEO Ryan Cohen said: “Since we started Chewy, we have been dedicated to understanding and satisfying the evolving needs of our customers to deliver the highest quality pet products and customer service.
“Combining our strong e-commerce expertise with PetSmart’s best-in-class infrastructure, footprint and breadth of offerings, including services, will help us ‘wow’ our customers even more.”
Barclays and Citi were the financial advisers for Petsmart, while Simpson Thacher & Bartlet acted as its legal adviser.
Citigroup Global Markets and Barclays also provided committed financing for the acquisition. Equity funding is being provided by PetSmart’s existing shareholders.
Allen & Company acted as the financial adviser on this transaction for Chewy, with Weil, Gotshal & Manges acting as its legal adviser.
Image: A PetSmart outlet in Secaucus, New Jersey. Photo: courtesy of NightScream via Wikipedia