Largest #PE #LBO of 2014: $PETM // Transaction valued at $8.7B // $83/share cash // 9.1x #EBITDA


PretSmart

PHOENIX & NEW YORK–(BUSINESS WIRE)–Dec. 14, 2014– PetSmart, Inc.(NASDAQ:PETM) today announced that it has entered into a definitive agreement to be acquired by a consortium led by BC Partners, Inc. at a price of $83.00 per share in cash, representing a premium of approximately 39% over PetSmart’s unaffected closing share price on July 2, 2014. The consortium includes Funds advised by BC Partners (“the BC Funds”), alongside several of its limited partners, including La Caisse de dépôt et placement du Québec (“La Caisse”) and StepStone. Longview Asset Management, which owns or manages approximately 9% of PetSmart’s outstanding shares has committed to vote in favor of the transaction.Longview will participate in the consortium only with respect to approximately one-third of its holdings, with the balance of its holdings receiving the same$83.00 per share cash transaction consideration as PetSmart’s public shareholders will receive.

The transaction would be valued at approximately $8.7 billion, representing a 9.1x multiple of PetSmart’s adjusted EBITDA for the twelve months ending November 2, 2014.;

The announcement follows a thorough review of strategic alternatives undertaken by the PetSmart Board of Directors to maximize shareholder value which began over the summer. The transaction was unanimously approved by the PetSmart Board and is subject to shareholder and regulatory approval and other customary closing conditions. The consortium has received fully committed debt financing in connection with the transaction. The transaction is expected to close in the first half of 2015.

Sources

1. PetSmart SEC 8-K Filing http://www.sec.gov/Archives/edgar/data/863157/000089882214000458/pressrelease.htm

2. SeekingAlpha Analysis via Apus Investments http://seekingalpha.com/article/2755355-update-petsmart-offer-above-my-expectations-at-83-share

3. PetSmart Corporate Press Release http://phx.corporate-ir.net/phoenix.zhtml?c=196265&p=RssLanding&cat=news&id=1999212

Photo Credits

1. PetSmart Investor Relations – 2005 Annual Report

2. Handshake – 3milliondogs.com

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