Pet superstore chain Pets at Home was under new ownership today after a private equity firm struck a deal valuing the business at £230m.
The Cheshire-based company, which operates 155 stores and employs 2,700 people, has been acquired by Bridgepoint after minority shareholders 3i and ICG decided to sell their stakes.
Anthony Preston, who founded the business and whose family previously had a controlling stake, will retain an interest in Pets at Home, although the details of his new holding have not been disclosed.
The move comes three months after Pets at Home said it was looking at ways to fund a major expansion programme, which could see it more than double its number of outlets over the next five years. One of the options originally being considered was a flotation on the stock market.
The company, which sell pet foods and accessories, began life in 1991 with a single store in Chester. It then expanded throughout the 1990s to 60 stores before buying PetSmart, then its largest UK rival, in 1999.
Preston said: “Pets at Home is about to enter a new phase in its growth with the support of a new institutional shareholder who shares the management’s vision of continued growth and success.”
As part of the company’s growth strategy, Pets at Home opened a 155,000 sq ft (14,399.5 sq m) distribution centre in Stoke in May of last year.
That was one of the factors behind record results for the period to the end of March with annual revenues up to £218m and earnings of £24m.
The buyout, which is the third largest in the retail sector this year behind deals for New Look and Ethel Austin, provides an exit for 3i and ICG, who first invested in Pets at Home in 1995 and 1999 respectively.
Bridgepoint partner Guy Weldon said: “This is a highly regarded business and brand with an impressive growth record and strong market position.”
The private equity house has previously backed retailers in the UK including Adams childrenswear and Molton Brown.
References: EGi News 20/07/04
