Petco and DrsFosterSmith

[JC]

I buy from foster and smith all the time and recently from jehmco who I'm very impressed with their prices, selection, and service. I also spend quite a bit at my favorite local pet shop Roe's to help support the mom and pop shop

"spreading the wealth" is critical for this hobby's long term survival.

You betcha !...and spreading good stock too....

I do that too. I like to sell to my local fish store so others can have great stock in my area

[GraphicGr8s]

And it seems Petco will also acquire PetSmart.

[Mugwump]

And it seems Petco will also acquire PetSmart.

I read it was a 'merger', not a buyout.....??

[Mugwump]

But then I see this....

Why a Merger of Pet Retailers Would Make Sense
By Kevin Allison   

http://dealbook.nytimes.com/2014/07/09/why-a-merger-of-pet-retailers-would-make-sense/?_r=0

"""PetSmart?s activist shareholders are barking up the right tree. Jana Partners and Longview Asset Management, which together own about a one-fifth stake, are demanding that the  purveyor of dog food and toys sell itself. There are other options to enhance shareholder returns, but a deal with Petco, the smaller rival controlled by TPG and Leonard Green, could be the pick of the litter.

Like so many other specialty retailers, PetSmart is being chased by Wal-Mart and Amazon. Sales growth at PetSmart stores open for more than a year has declined by half in 18 months. As a result, its shares have tumbled, too. A 20 percent fall since last October opened the gate for Barry Rosenstein?s Jana.

In response, PetSmart said on Monday that it had been reviewing its capital structure. The language used gives off a whiff of borrowing money to pay for a bigger buyback. It?s good as far it goes, but such repurchases often have a way of coming back to bite.

On the other hand, retail combinations can produce savings of up to 10 percent of a target?s sales. Assume 4 percent conservatively in this case, and Breakingviews calculations suggest available synergies worth about $1.8 billion today. That would leave room for a 25 percent premium to $6.8 billion PetSmart, whose shares have already bounced by about 15 percent in the days since the activists started growling.

PetSmart?s nearly debt-free balance sheet also can withstand some borrowing. The company is expected by analysts to generate $930 million of earnings before interest, taxes, depreciation and amortization this year. Ignore whatever leverage the privately owned Petco carries. Even after adjusting for PetSmart?s rent expenses, it probably could issue at least $4 billion in bonds.

What?s more, Longview suggested that it might be willing to act as an equity partner in a buyout of sorts. Though similar combinations such as Office Depot and OfficeMax elicit attention from antitrust regulators, the broad and fierce competition generally keeps them at bay. It may take a little coaxing, but Petco should eventually sit up and shake."""

[GraphicGr8s]

And it seems Petco will also acquire PetSmart.

I read it was a 'merger', not a buyout.....??

Semantics. So if Kmart bought Sears why is the corporate name Sears?

[Mugwump]

And it seems Petco will also acquire PetSmart.

I read it was a 'merger', not a buyout.....??

Semantics. So if Kmart bought Sears why is the corporate name Sears?

Semantics, maybe?...legal mumble jumble, more likely tho......there's something in it somebody tho....did you read the above??...

[PaulineMi]

http://www.businessweek.com/news/2014-12-14/petsmart-agrees-to-be-bought-by-bc-partners-group-for-83-share

[Mugwump]

http://www.businessweek.com/news/2014-12-14/petsmart-agrees-to-be-bought-by-bc-partners-group-for-83-share

yep.....

http://dealbook.nytimes.com/2014/07/09/why-a-merger-of-pet-retailers-would-make-sense/?_r=0