Apollo Global Management Said to be Near Deal to Acquire PetSmart for ~$8B
Apollo Global Management Near Deal to Acquire PetSmart for ~$8B
The Investor Stake:
PetSmart, Inc. (NASDAQ: PETM) is close to a deal to sell to private equity firm Apollo Global Management, LLC (NYSE: APO) for approximately $8 billion, according to both the NY Post and Bloomberg. Sources say the deal could be announced prior to Monday's market open.
Barclays and Citigroup reportedly have agreed to arrange $6.25 billion for the PetSmart deal, or 6.5 times the company's Ebitda. That falls out of the guidelines of a six time Ebitda limit set by the Federal Reserve. At least two banks are said to have dropped out due to regulatory concerns.
Jana Partners has a 9.8% stake in PetSmart and has been pressing for a takeover. A deal at $8 billion would mean a 50% gain in the share price, since Jana's stake was announced on July 3.
PetSmart shares closed Friday at $77.67, a loss of about 1%.
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