by Tom Paine, Philly Tech News
On August 19, while announcing its earnings, PetSmart confirmed it was acquiring Plymouth Meeting-based Pet360 for $130 million plus a potential $30 million earnout. At the same time, the company said it was exploring other strategic options, including a possible sale.
PetSmart’s CEO said that even as the company considers a possible sale, it is acquiring Pet360, an online merchant of pet food, supplies, meds and services, to leverage and expand its ecommerce business.
In 2011, Pet360 raised $18 million from Updata Partners and LLR Partners. LLR Partners took part in a previous $10 million round in 2007.
PetSmart has seen its sales slump recently and has been pushed by its primary investors, Longview Asset Management LLC and Jana Partners LLC, to explore options. PetSmart posted
a profit of $98.1 million on revenue of $1.73 billion in the quarter ended August 3.
Pet360’s revenue wasn’t disclosed. Around 125 Pet360 employees will remain in Montgomery County after the sale, Pet360 CEO Brock Weatherup told Technical.ly.
The deal would be LLR Partners’ second large announced exit in a month, the first being Quintiq’s by Daassault Systemes for about $336 million announced in late July.