KKR acquires Pets at Home for £955 million

Private equity firm and leveraged buyout specialist, Kohlberg Kravis Roberts (KKR), has acquired the UK's largest pet supplies retail chain Pets at Home from rival buy-out firm Bridgepoint Capital for £955 million including £233 million debt.

Bridgepoint has made a handsome profit from the sale of Pets at Home, which it had acquired in 2004 for £230 million.

Cheshire-based Pets at Home is the UK largest pet accessories retailer having over 240 stores, and operates 54 veterinary centres employing a total of 4,200 staff and had 2008 revenue of £404 million.

Founded in 1991 by opening its first store in Chester, Pets at Home has expanded its chain across the UK more aggressively in recent years by opening around 20 new outlets each year and has added pet grooming and adoption centres to its service.
It went international in 2008 with the opening of joint venture stores in Victoria and Melbourne, Australia.

Bridgepoint had earlier planned an initial public offering of Pets at Home and at the same time was looking for a potential buyer.

New York City-based KKR, which has approximately $50 billion assets under management, had outbid other private equity players Bain Capital, Apax Partners and TPG in the second round of bidding held on 25 January.

In the first round of bidding held in December, all of them had bid around £800 million.

KKR, whose retail investments include toys chain Toys R Us and Dollar General in the US and health and beauty group Alliance Boots in the UK, said that it will continue to expand and develop Pets at Home as well as deliver its unmatched breadth of products, store environment, competitive pricing and customer service.