Pet Valu and Pet Supermarket are merging to create the third largest specialty pet retailer in North America.
The combined business will be renamed Pet Retail Brands and operate more than 930 stores representing roughly $1 billion in sales in the United States and Canada.
Pet Valu was taken private by an affiliate of Roark Capital in August 2009. Pet Supermarket was acquired by an affiliate of Roark Capital in April of 2015. Pet Retail Brands will remain headquartered in Markham, Ontario and Pet Supermarket operations will continue to be based in Sunrise, Florida.
"The combination of these two highly complementary businesses, both long established brands with strong cultures and deep commitments to local communities and helping pets, will create the leading community focused pet specialty retailer in North America," said Ezra Field, Managing Director of Roark Capital. "Together, both brands will benefit by sharing infrastructure, resources and best practices to deliver superb value to both Pet Valu and Pet Supermarket's loyal customers, committed employees and business partners."
Thomas McNeely will become president and CEO of Pet Retail Brands. McNeely has been CEO of Pet Valu since August 2009. Diane Holtz announced her retirement as Pet Supermarket's president and CEO.
"Bringing together two of the fastest growing pet specialty retailers creates a powerful platform to share resources and best practices to support both Pet Supermarket, Pet Valu and their loyal customers. I look forward to working with all of the employees and suppliers of Pet Supermarket as well as Pet Valu franchisees to grow these brands, which have been providing pets with superior products and service for over 40 years."
Petco and PetSmart have been locked in heated competition with Petco sold—from one private equity group to another—in November for $4.6 billion. The newly formed Pet Retail Brands stands to further shake up the market.
- see this Roark Capital Group announcement
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