PetSmart, Chewy to be unleashed as separate entities after recapitalization, report says

Posted at 9:02 AM, Oct 26, 2020
and last updated 2020-10-26 12:02:05-04

A group led by New York private equity firm BC Partners Inc. is looking to split up Phoenix-based PetSmart Inc. and Chewy Inc. amid a major recapitalization plan.

Citing documents released to investors, Bloomberg reports that the deal would recapitalize PetSmart with about $1.3 billion in equity and more than $4.6 billion in debt, valuing the total deal at nearly $6 billion.

Florida-based Chewy went public in June 2019 with an initial valuation of nearly $9 billion. PetSmart had acquired Chewy back in 2017 for about $3 billion but last year separated Chewy from its other businesses in preparations for the IPO.

The move triggered a lawsuit, which PetSmart settled in April 2019, Bloomberg previously reported.

Read more from the Phoenix Business Journal.