PHOENIX and NEW YORK — On July 24, PetSmart shared it has received an investment from Apollo Funds’ affiliates. BC Partners, current owner of the pet retailer alongside co-investors GIC and PetSmart’s management team, will remain the majority shareholders of PetSmart and retain full control of its board following Apollo’s investment.

“We are delighted to welcome Apollo as a strategic partner — affirming our growth and the strength of our associates’ commitment to doing anything for pets,” said J.K. Symancyk, president and chief executive officer of PetSmart. “The combined expertise of BC Partners and Apollo enables even greater value creation opportunities as we embark on the next stage of growth for the business. We are grateful for the continued support of BC Partners, who have been our trusted partner for over eight years and look forward to working with the team at Apollo who bring the highest levels of expertise and whose vision for PetSmart aligns with our own.”

According to PetSmart, Apollo’s investment reaffirms its opportunities for future growth. PetSmart will leverage support from Apollo, as well as that from BC Partners, to help drive “excellence” throughout its store network and expand its suite of pet products and services.

“PetSmart is an incredible, highly differentiated business in an industry that continues to see strong, sustainable growth across both pet ownership and pet care,” said Andrew Jhawar, partner at Apollo. “We are big believers in PetSmart’s management team and store associates, as well as the company’s growth strategy, operating model, and historical resiliency throughout market cycles, which gave us strong conviction to make this strategic investment alongside BC Partners, its co-investors and management. We are pleased to support PetSmart’s continued success as a meaningful shareholder moving forward, where we will utilize our demonstrated historical experience as a highly successful investor in the consumer, grocery and retail sectors.”

BC Partners invested in PetSmart in 2015, acquiring the company in a public-to-private transaction. Under management of BC Partners, PetSmart has since increased its revenue by 40%, while also investing in its employees and pet care products. Their partnership has also helped PetSmart with strategic capital investments in both digital and supply chain development, allowing the retailer to drive its growth in revenue and profitability, especially within the omnichannel.

“We are in the midst of an incredible journey, which we are pleased to share with the entire PetSmart team,” said Raymond Svider, chairman at BC Partners. “Our conviction in this business, close partnership with management, and the acumen of our investment and portfolio operations team have achieved a flagship investment for the firm, our limited partners and all stakeholders. BC Partners has a long history of working in partnership with the Apollo team and we welcome the opportunity to do so again as we support PetSmart in the next stage of its growth.”

Financial details of the transaction were not disclosed. The transaction is expected to close in the fourth quarter of 2023.

“We are excited to be making this investment in PetSmart, an industry leader providing a wide breadth of products and services to pets and pet parents in communities across North America,” said Salim Hirji, partner at Apollo. “We look forward to working with and supporting the company’s management team and store associates as PetSmart embarks on its next phase of growth.”

Read more about pet retail trends.