Pet supply retailer Pet Valu Inc. said Monday it will pass into American ownership through a $143.7-million sale to an Atlanta-based private equity firm.
Pet Valu, currently headquartered in Markham, Ont., said the offer from Roark Capital Group values the company at $13.68 per share.
The sale has the support of Pet Valu’s board, who will urge shareholders to tender their stock to the transaction.
The company’s top two shareholders, chief executive Geoffrey Holt and fund manager Goodwood Inc., have already agreed to support the deal.
The company said Holt would be retiring as chief executive after completion of the sale, which is expected to close in the third quarter. The deal is still subject to approval from shareholders and the British Columbia court.
“Under the direction of a special Committee and the boards, Pet Valu conducted a very thorough process of seeking alternatives that would enhance value for Pet Valu shareholders,” chairman Ian Ross said in a statement.
“The boards concluded that the transaction with Roark represents the best alternative for shareholders. Joining forces with Roark, which has deep experience investing in franchise and specialty retail businesses, also represents a promising opportunity for our customers, employees and franchisees.”
“Pet Valu, which will be Roark’s 15th franchise investment, is consistent with our strategy of investing in value-added franchises that have strong brands and market positions, experienced management and a loyal customer base,” said Roark managing director Neal Aronson.
