Nov. 7, 2014, 12:58 PM
- P-E firms including KKR, Apollo Global Management (NYSE:APO), BC Partners and Clayton Dubilier & Rice have been invited to the final round of bidding for PetSmart (NASDAQ:PETM), WSJ reports.
- A deal to take PETM private would be the largest leveraged buyout of the year, according to data from Dealogic.
Oct. 29, 2014, 2:53 PM| 3 Comments
Oct. 23, 2014, 10:51 AM
- KKR (KKR +1.4%) is taking a serious look at PetSmart (PETM +0.6%), according to the New York Post.
- The investment firm has a nice track record in the pet supplier business after guiding Pets at Home to a profitable IPO.
- Firdt-round bids on PetSmart are due in by the end of the month with JPMorgan overseeing the action.
- Investors haven't really assigned a buyout premium on PETM as shares trade lower than they did three months ago.
Oct. 6, 2014, 4:10 PM
Oct. 6, 2014, 7:17 AM
Sep. 5, 2014, 3:13 PM
- PetSmart (PETM -0.7%) is reinstated with an Underperform rating and $55 price target at BofA/Merrill, which now believes there is "no doggone way" the company gets taken private.
- Hopes of a buyout have kept the stock price propped up, but analyst Denise Chai believes the prospect of a deal is diminishing since a potential buyer has not emerged following Jana's suggested sale of the company; what's more, PETM's high valuation and "challenged fundamentals" make a potential acquisition unattractive.
- The firm thinks the new initiatives laid out by management, including cost cutting and broadening of mass food and omnichannel expansion, are insufficient to turn around the business.
Aug. 19, 2014, 9:31 PM
Aug. 19, 2014, 6:18 PM
- Along with its Q2 results, PetSmart (NASDAQ:PETM) has confirmed reports it will explore strategic alternatives, including a possible sale. JPMorgan has been hired to help out.
- The company has also announced: it's buying online pet product retailer and content provider Pet360 for $130M up-front + up to $30M in earn-outs. PetSmart notes Pet360 reaches 12M+ "pet parents" per month, and that its assets include several popular pet food and content properties. The deal is expected to close in September.
- PetSmart has launched "a broad cost-reduction program" that will "target all areas of the business, including, in order of magnitude, cost of goods sold, logistics, sourcing, store operating costs and overhead." More details will be given next quarter.
- Comparable store sales fell 0.5% Y/Y in Q2. Q3 EPS guidance is at $0.93-$0.97 (consensus is at $0.94), and full-year EPS guidance is at $4.29-$4.39 (consensus is at $4.32).
- Full-year net sales are expected to grow at a low-single digit clip (consensus is at 2%), and comparable store sales are expected to be relatively flat.
- Shares are halted. Q2 results, PR.
Aug. 19, 2014, 6:00 PM
Aug. 19, 2014, 5:30 PM
Aug. 19, 2014, 3:50 PM
Aug. 18, 2014, 2:40 PM
- Jana Partners discloses in a SEC filing that it received an anonymous package with sensitive inside information about PetSmart (PETM).
- The documents detail PetSmart's business plans and a concession from the company that it has missed internal projections.
- The authenticity of the information has not been confirmed by PetSmart.
- SEC Form 13D
Aug. 12, 2014, 3:52 PM
- Jana Partners sent a letter to the board of directors at PetSmart (PETM -0.1%) urging for a full review of all strategic alternatives including exploring sale options.
- The hedge fund says it learned from shareholders that the company held a meeting for employees last week in which it suggested they "enhance" upcoming quarterly results in anticipation of a proxy battle.
- Full text of Jana letter
Aug. 4, 2014, 9:36 AM
- Jana Partners says there are a number of potential acquirers for PetSmart (PETM +0.7%).
- The investment firm hasn't been shy about pushing PetSmart to explore a sale.
- The Jana rationale : "Given PetSmart’s chronic operational underperformance and failure to generate shareholder value, and given significant interest in an acquisition of the Company, it is very likely that such a sale offers the best risk-adjusted return for shareholders."
- SEC Form 13D
Jul. 29, 2014, 9:33 AM
- Jana Partners hammers away at PetSmart (PETM) in a new letter to the company's board of directors.
- The investment firm says it's "stunned" that PetSmart wants to skip a review of potential acquirers to jump straight into a recapitalization plan.
- Jana holds 9.8% of PetSmart and has put the retailer on notice it will push for board changes if a full strategic review isn't implemented.
- SEC filing
Jul. 19, 2014, 8:25 AM
- The derivatives research team at UBS lists six companies on which investors should not use an option strategy, as it expects near-term catalysts to drive the stocks higher.
- Abercrombie & Fitch (NYSE:ANF): UBS cites continuing share repurchases, leaner inventory and improving fashion offerings as possible catalysts.
- Air Products (NYSE:APD): Don't overwrite or hedge the stock for 60 days, UBS says, as it sees activist investors becoming more aggressive in the name over the next two months.
- PetSmart (NASDAQ:PETM): Activist pressure to unlock value has stepped up, and the company is talking with Wall Street banks for possible strategies.
- Tesla (NASDAQ:TSLA): The UBS team says the possibility of a Gigafactory announcement could boost the stock, which has long been volatile.
- Teva Pharma (NYSE:TEVA): It is well positioned to take advantage of the high number of branded drugs going off-patent in coming years, and there's no way UBS is hedging the stock with M&A rampant in the sector.
- Weyerhaeuser (NYSE:WY): UBS expects volatility after it completes a corporate structural change, and an expected capital allocation announcement could prove to be a catalyst.
PETM vs. ETF Alternatives
PetSmart Inc provides specialty products, services and solutions for the lifetime needs of pets in North America. It offers products for all the life stages of pets, professional grooming, training, day camp for dogs and boarding.
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