Petco plans IPO as pet adoption rates soar
Petco's business involves pampering your pet with wellness
After going private in 2016, Petco plans to return to the public markets as more Americans adopt pets during the pandemic.
To meet that demand, CEO Ron Coughlin says the retailer is the "only health and wellness company for pets."
His comments, in an SEC filing for an Initial Public Offering, say Petco is "redefining the pet care industry and generating a compelling growth trajectory."
Petco, which operates 1,470 stores, did not disclose how many shares it will sell to the public just yet, only putting in the standard $100 million placeholder figure. In September, Bloomberg reported an IPO or sale of the company could value it at $6 billion.
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COVID-19 is playing a major role in business, as explained in its filing, accelerating the rate of pet adoption despite a slowdown in the overall economy.
"Although the COVID-19 crisis has presented significant challenges to the broader economy, the pandemic has accelerated several consumer trends that have meaningfully benefited the pet care industry, which has been deemed essential by federal, state, and local authorities," Petco wrote in the filing. "Pet adoption and purchase has accelerated meaningfully as consumers spend more time at home and outdoors, and have an increasing desire for companionship, a need to entertain children, and a growing appreciation for the physical and mental health and wellness benefits of pet parenthood."
Additionally, the company cited a revamped leadership team, more than $300 million in investments across e-commerce and digital and a number of other changes to showcase its efforts.
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This would be the third time Petco has gone public, having previously been acquired by private-equity firms CVC Capital Partners and Canadian Pension Plan Investment Board for $4.6 billion in 2016.
It also went private in October 2006, when it was acquired by private equity firms TPG Global and Leonard Green & Partners.