PetSmart, Inc. (PETM) Sold for $8.7B to Investor Group

The investors were led by BC Partners

PetSmart, Inc. (PETM) was bought by a group of investors for $8.7 billion.

petsmart-petmThe group of investors that bought PetSmart were lead by BC Partners. The group agreed to pay $83 a share for the company. It’s the biggest private equity deal of 2014. The company started looking to sell itself in July, reports CNN Money.

Jana Partners is the hedge fund lead by BC Partners in the acquisition of PetSmart. The hedge fund held shares in the company in May and started buying more in July when its price dropped almost 10%. After buying more than 5 million PETM shares, Jana Partners announced a 10% stake in the company, Forbes notes.

PetSmart has roughly 1,400 in North America. The company doesn’t predict any sales boosts next year, but it has a plan to cut costs by $200 million, reports CNN Money.

PETM shares were up 4% as of Monday afternoon.

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