PetSmart (Chewy)

Close-up of a dog on a blue background

$11m

Direct investment

In a rapidly growing market, PetSmart is a leading retailer of pet products and services.

Key Stats

  • $11 million total investment in 2014 / 2017
  • PetSmart is a leading in store and online retailer of pet products and services in the US.
  • Sector: Consumer goods and services
  • Underlying manager: BC Partners
Co-investment alongside BC European Capital IX

PetSmart is a leading in store and online retailer of pet products and services in the US. It was acquired by BC Partners in a public-to-private transaction in December 2014. In 2017, BC acquired Chewy as a complement to PetSmart. Chewy is the leading specialist online retailer of pet products in the US. 

The businesses operate alongside each other and have not been operationally integrated: Chewy is an independent subsidiary of PetSmart. Chewy was listed on the NYSE in June 2019 in an oversubscribed IPO which has resulted in a significant uplift. Chewy’s recent results at June 2019 saw annual revenue growth of over 40%.

Investment rational

  • PetSmart is a leader in an attractive market.
  • Demographics driving increased pet ownership. The trend of the ‘humanisation’ of pets supports long term market growth through economic cycles
  • The US pet products market has grown in excess of GDP every year since 2000: it is estimated to be worth $59bn annually
  • The investment in Chewy provides exposure to the fast growing e-commerce channel

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