Petco abandons IPO plan in favor of $4.6B buyout

Back in August, retail chain Petco filed for an initial public offering, emphasizing its newfound focus on animal health. But on November 23, the company said that it will instead be acquired for $4.6 billion by the private equity firms CVC Capital Partners and the Canadian Pension Plan Investment Board. That's a tidy profit for Petco's current owners, private equity firms TPG Capital and Leonard Green & Partners, which took the company private in 2006 for $1.8 billion. And it comes about a year after chief rival PetSmart was bought out for $8.2 billion. Petco has spent the last couple of years boosting its animal-health offerings, acquiring online veterinary-drug retailer Drs. Foster & Smith, for example, and offering vaccinations through its Vetco in-store clinics. The deal is expected to close in early 2016. Article