Petco, with $ 3.3 billion in debt, plans IPO

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A sale or IPO of Petco could value the company at $ 6 billion.

Felixcasio / Dream time

It’s official. Petco goes public again.

San Diego society filed Thursday to raise $ 100 million. Petco has not disclosed how many shares it will offer or their price range. This will come in future repositories. The $ 100 million is also a placeholder that will likely change. Petco sale or IPO could value the company at $ 6 billion, Bloomberg said in September.

Petco has announced its intention to trade on the Nasdaq under the symbol WOOF.



Goldman Sachs Group

and BofA Securities are the main underwriters of the transaction.

IPO comes four years after private equity firms



HVAC

Capital Partners and the Canada Pension Plan Investment Board acquired Petco for $ 4.6 billion in 2016. Earlier this year, PE companies examined strategic options for Petco, including a sale or IPO. In November, Petco said it had filed confidentially with the Securities and Exchange Commission to go public.

The IPO would be the third time Petco has operated on the public stock markets. The company first went public in 1994. It went private in 2000 when TPG and Leonard Green acquired Petco in a $ 600 million deal. Petco went public for the second time in 2002.

Petco did not disclose how much CVC and CPPIB owned the company. This will likely come in future repositories.

Founded in 1965, Petco no longer calls itself a retailer but has said it has evolved into a “provider of pet health and wellness offerings.” It operates approximately 1,470 pet care centers that sell food, toys, and supplies, while providing professional services such as animal grooming, veterinary care, and pet training.

In 2018, Petco stopped selling dog and cat food and treats containing artificial ingredients. It removed the shock collars from its shelves this year. Petco also offers pet health insurance and a Vital Care subscription, which includes unlimited vet exams, dog nail clippings and tooth brushing.

The Covid-19 pandemic has hurt Petco, which has shut down operations at several of its pet care centers. This resulted in lower revenues for pet care centers, according to the prospectus. The virus may “negatively affect those revenues for an uncertain period,” Petco said on the record.

Petco is not profitable even though the losses have been reduced. The company reported $ 24.8 million in net losses for the 39 weeks ended October 31, compared to about $ 94 million in losses for the comparable period in 2019. Net sales increased 9% to $ 3.58 billion dollars for the 39 weeks ended October 31. Petco is also heavily in debt. The company had approximately $ 3.3 billion in debt as of Oct. 31, according to the prospectus.

Write to Luisa Beltran at [email protected]

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