Pet essentials retailer PetSmart is in talks to go public through a SPAC deal with KKR Acquisition Holdings Corp, Bloomberg News reported on Thursday, citing people familiar with the matter.
The SPAC deal between the blank check company, backed by private equity firm KKR, and PetSmart would be valued at $14 billion, including debt, the report added.
The discussions are in the early stage and can still end without an agreement, according to the report.
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KKR declined to comment, while PetSmart did not immediately respond to Reuters’ queries.
Private equity firm BC Partners acquired PetSmart for $8.7 billion in 2014, as it sought to capitalize on consumers lavishing their pets with expensive treats and gear. However, the company quickly faced strong headwinds as many customers snubbed its stores for the convenience of online shopping.
In response, PetSmart acquired Chewy in 2017, adding $2 billion to PetSmart’s debt load to do the deal. The initial public offering (IPO) valued Chewy at almost three times the $3.35 billion PetSmart paid for the company.
Source: Reuters
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