Report: Argos Merger provides $1.9 billion funding for PetSmart buyout

Phoenix – The $8.7 billion private equity acquisition of PetSmart Inc. that was announced in December 2014 is one step closer to fruition. Argos Merger is providing a $1.9 billion senior note unsecured offering to finance the purchase.



PetSmart is being purchased by a consortium of buyers led by private equity firm B.C. Partners and also including pension fund manager La Caisse de dépôt et placement du Québec and private equity firm StepStone. The total figure represents an acquisition price of $83 per share, a 39% premium over PetSmart’s closing price on July 2, 2014.



The acquisition, which marked the largest private equity buyout of 2014, followed a review of strategic alternatives undertaken by the PetSmart board of directors, which began in summer 2014. The transaction was unanimously approved by the PetSmart board and is subject to shareholder and regulatory approval and other customary closing conditions. The transaction is expected to close in the first half of 2015.



Investor road shows will take place from Feb. 13-19, to be followed by pricing.