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  • Writer's pictureShernel Thielman

Apollo Funds to Make Strategic Equity Investment in PetSmart

Title: Apollo Funds to Make Strategic Equity Investment in PetSmart



Introduction:


PetSmart, a leading omnichannel pet retailer in North America, has recently announced a strategic equity investment by funds managed by affiliates of Apollo Global Management, Inc. (NYSE: APO). This investment reaffirms PetSmart's strong fundamentals and growth potential, as it continues to excel in providing comprehensive pet products and services across its extensive store network. BC Partners, along with co-investors, will maintain majority ownership and control of the PetSmart Board, ensuring continued collaboration and support for the company's future endeavors.


The Investment:


Apollo Funds' strategic investment in PetSmart underscores the company's solid market position and its resilient performance even during economic cycles. As a long-term net grower, PetSmart benefits from increasing pet ownership and higher spending per pet. The company's offering of in-person grooming, training, veterinary services, and proprietary product lines differentiates it from online-only competitors, providing a unique value proposition to pet parents.


Previous Success and Future Plans:


Under BC Partners' ownership, PetSmart has witnessed remarkable growth, increasing revenues by over 40% and investing in associates and industry-leading pet care. Their commitment to continuous learning and professional development ensures a positive working environment, guaranteeing the highest standard of animal care.


PetSmart's management team, along with BC Partners and now Apollo, envisions a future of continued growth and value creation. The transaction is expected to be completed in the fourth quarter of 2023, pending customary closing conditions and regulatory approvals.


Conclusion:


The strategic equity investment by Apollo Funds in PetSmart reinforces the company's position as a leader in the pet retail industry. With the support of BC Partners and Apollo, PetSmart is poised to embark on the next phase of its growth journey, capitalizing on market opportunities and delivering exceptional products and services to its loyal customers and their beloved pets.


Investment Disclaimer:


This blog post is for informational purposes only and should not be considered as investment advice. Investing in equities involves inherent risks, including potential financial losses. Before making any investment decisions, it is recommended to consult with a qualified financial advisor. The author, do not endorse or recommend any specific investment products or strategies. The information provided in this blog post is based on publicly available sources and should not be considered as a guarantee of future investment performance.

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