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Funding & Exit

PetSmart Completes Acquisition of Chewy

Larry Cheng
Larry Cheng is a Co-Founder and Managing Partner at Volition Capital.
Volition

PHOENIX–(BUSINESS WIRE)–PetSmart, Inc. (“PetSmart”) today announced it completed the acquisition of Chewy, Inc. (“Chewy”), the nation’s leading online retailer for pet products. The combination of PetSmart and Chewy creates one of the leading brick and mortar and online pet retailers, providing the most convenient, high-touch customer experience to serve the needs of pet parents and pets across every channel.

PetSmart will benefit from Chewy’s e-commerce expertise as it continues its transformational journey to be the most convenient, best-in-class pet retailer. Chewy will focus on its current business strategy and have access to PetSmart’s infrastructure and scale.

“We are excited to team up with Chewy,” said Michael Massey, President and Chief Executive Officer of PetSmart. “The addition of Chewy will help accelerate and drive the success of our digital strategy and the combination will provide customers with the most convenient experience and the widest selection of products and services available, both in-store and online. Ryan and his team bring extensive experience in providing customer-focused solutions for pet parents across digital channels, a key strategic focus for PetSmart. We look forward to developing new and innovative offerings and continuing to be the trusted partner to pet parents and pets.”

Chewy will operate largely as an independent subsidiary of PetSmart. Ryan Cohen will continue to lead as CEO of Chewy and will serve as a member of PetSmart’s board of directors.

“I am looking forward to working with Michael and the PetSmart team,” said Ryan Cohen, co-founder and CEO of Chewy. “Our companies have a shared mission centered on a love of pets and serving pet lovers, which will be the foundation for everything we do together. Chewy will continue to wow our customers with personalized customer service and speedy delivery of their pet’s favorite food and supplies.”

As previously disclosed, PetSmart financed the transaction through the offering of $1,350 million of 5.875% senior first lien notes and $650 million of 8.875% senior notes, together with proceeds of an approximately $1,000 million equity contribution by PetSmart’s existing investor group and cash on hand.

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