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.