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Highlights:
- PetSmart caters to the lifetime needs of pets and has around 1,650 pet stores in the United States, Puerto Rico, and Canada.
- According to reports, the specialty pet retailer could merge with KKR Acquisition Holdings I Corp.
- BC Partners backs PetSmart. According to its website, PetSmart was acquired by private equity firms led by BC Partners in 2015.
Arizona-based PetSmart LLC could be in talks with a blank-check company to go public in the United States. According to reports, the specialty pet retailer could merge with KKR Acquisition Holdings I Corp. (NYSE:KAHC).
KKR Acquisition Holdings I Corp. is a special purpose acquisition company, and it is backed by private equity firm KKR & Co. Inc. (NYSE:KKR).
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PetSmart will reportedly be valued at US$ 14 billion, including debt in the merger transaction. In March 2021, KKR Acquisition Holdings raised US$ 1.38 billion through a public debut.
The SPAC went public to look for a merger deal in the consumer or retail industries.
PetSmart going public?
PetSmart has not made an official announcement about its public debut plans; however, published reports have suggested that the specialty pet retailer could be mulling a SPAC merger.
If the SPAC merger reports are accurate, then PetSmart would become a public company after merging with KKR Acquisition.
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BC Partners backs PetSmart, and according to its website, PetSmart was acquired by private equity firms led by BC Partners in 2015.
The Arizona-based retailer was acquired through a public to a private transaction.
Bottom line
PetSmart caters to the lifetime needs of pets and has around 1,650 pet stores. In addition, the specialty pet retailer operates over 200 in-store PetsHotel®, a boarding facility for dogs and cats.
PetSmart provides a wide range of pet food and products. It also gives pet boarding, dog training, and pet grooming, among other services.
Companies offering products and services for pets seem to have high growth potential as animal adoption is quite popular.
A Global Market Insights report had valued the pet care market size at US$ 232 billion in 2020. It is estimated to grow at a compound annual growth rate of 6.1 per cent between 2021 to 2027.
The United States dominated the North American pet care market and generated approximately US$ 100 billion in revenue in 2020.
As the COVID-19 pandemic limited human interaction, it appears that pet ownership has surged worldwide, which could further contribute to the industry’s growth.
