27 January 2010
Kohlberg Kravis Roberts & Co. (together with its affiliates, “KKR”) today announced the signing of a definitive agreement with Bridgepoint and other co-investors to acquire Pets at Home, the UK’s leading retailer of pet food and pet-related services and accessories.
Matt Davies, CEO of Pets at Home, commented: "We are thrilled to embark on this new chapter in our history with the strong support of KKR. KKR's investment represents a resounding endorsement of our success to date and a validation of our colleagues' commitment and enthusiasm towards pets and pet owners across the UK. KKR has a track-record of investing in world-class retailers around the world, and it's exciting for us to join the ranks of KKR retail investments like Alliance Boots, Toys"R"Us, Dollar General and Maxeda. It has been a pleasure to work with Bridgepoint over the last six years and we are proud of all we have accomplished with their support."
Bridgepoint acquired the business in August 2004 in a transaction totalling £230 million. Under its ownership, Pets at Home sales have more than doubled, EBITDA has more than tripled and almost 2000 new jobs were created. In addition, 100 new stores were opened, taking to over 250 the number of stores Pets at Home has in the UK.
For the year ended 31 March 2009 Pets at Home had revenues of £402.2 million and EBITDA of £70 million. In the six weeks to 7 January 2010, the company reported LFL sales growth of 6.7% and 9.8% LFL sales growth for the 41 weeks ending 7 January 2010.
Advisers involved in this transaction included: for KKR - Nomura (financial adviser), Nomura, Calyon and KKR Capital Markets (debt financing) and Commerzbank has agreed to join the arranging group, Simpson Thacher & Bartlett (legal); for Bridgepoint - Rothschild (financial adviser), Travers Smith (legal); for management - DLA (legal).
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