CVC Capital Partners, Canada Pension Plan Investment Board to Acquire Petco for $4.6 Billion

San Diego — Funds affiliated with CVC Capital Partners and Canada Pension Plan Investment Board (CPPIB) have agreed to jointly acquire San Diego-based Petco Animal Supplies Inc. for approximately $4.6 billion.

A group of investors led by TPG and Leonard Green & Partners is selling the pet supplies retailer, which operates more than 1,400 locations across the United States, Mexico and Puerto Rico.

“This investment aligns well with CPPIB’s strategy to invest in leading retail businesses with strong omnichannel capabilities,” says Shane Feeney, managing director and head of direct private equity for CPPIB. “Petco has long-term relationships with leading pet food vendors and a significant presence in the fast-growing e-commerce channel.”

The acquisition is expected to close in early 2016.

Goldman Sachs & Co. and J.P. Morgan Securities LLC are acting as financial advisors, and Ropes & Gray acted as legal counsel to Petco.

Barclays, Citigroup and Moelis acted as lead financial advisors to CVC and CPPIB. Barclays, Citigroup, Royal Bank of Canada, Credit Suisse, Nomura and Macquarie provided committed debt financing to CVC and CPPIB. Gibson Dunn acted as legal counsel to CVC and CPPIB. Torys LLP also separately advised CPPIB.

Founded in 1981, CVC is a private equity and investment advisory firm that has completed more than 300 investments worldwide, with an aggregate transaction value of more than $120 billion.

CPPIB is an investment management organization that invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 18 million contributors and beneficiaries.

— Katie Sloan and Scott Reid

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