Pets at Home sold for £955m
NORTH West retailer Pets at Home has been bought by US buyout firm KKR for £955m, it emerged today.
The Handforth-based group had been mulling a stock market flotation as well as a secondary buyout, but the price offered by KKR convinced owners Bridgepoint that was the way to go.
Chief executive Matthew Davies said: “We are thrilled to embark on this new chapter in our history with the strong support of KKR.
“KKR’s investment represents a resounding endorsement of our success to date and a validation of our colleagues’ commitment and enthusiasm towards pets and pet owners across the UK.”
He added: “KKR has a track-record of investing in world-class retailers around the world, and it’s exciting for us to join the ranks of KKR retail
investments like Alliance Boots, Toys“R”Us, Dollar General and Maxeda.”
KKR executive John Pfeffer said: “We are delighted to have the opportunity to back the outstanding Pets at Home management team led by Matt Davies and to invest in this exceptional company.
“Pets at Home leads the UK pet market with 4,200 passionate and expert colleagues and a well-differentiated retail proposition. We are enthusiastic about the significant further potential for Pets at Home to grow, develop and continue to deliver its unmatched breadth of products, store environment, competitive pricing and customer service.”
The sale is a stunning result for NM Rothschild’s Manchester office which advised Bridgepoint on the deal. A price of £800m had been suggested.
The Rothschild team was led by Richard Bailey, chairman of the firm’s regional business, and included Manchester office MD Andrew Thomas, supported by David Weavers and Katie Lomax.
Andrew Holt at law firm DLA Piper in Manchester advised the management team.
Pets at Home was founded by entrepreneur Anthony Preston in 1991. It currently operates from over 250 stores, totalling 2.1 million sq ft.
In addition to the retail outlets, Pets currently operates 54 veterinary surgeries on a joint venture basis under the brand name Companion Care.
In the 52 weeks to March 2009 the company achieved turnover of £404.2m and EBITDA of £70m.
