Irving Place Capital, a middle-market private equity firm, has agreed to acquire Pet Supplies Plus, the third largest pet retailer in the US.
Irving Place Capital will be investing in partnership with Pet Supplies Plus’ chief executive Harvey Solway, chief operating officer Dominic Buccellato and chief financial officer Richard Valade.
The transaction is expected to close in the third quarter of 2010.
Founded in 1988, Pet Supplies Plus currently operates 240 franchised stores in 22 states, primarily in the Midwest, Southeast and Northeast. Following the transaction, 92 stores will be converted to company-operated stores, with the remaining stores continuing as franchised stores.
The transaction will also include the acquisition of a captive distribution business that supplies pet food and other products exclusively to Pet Supplies Plus’ stores.
Solway says: “Irving Place Capital’s experience partnering with management and its strong track record working with growth-oriented consumer and retail companies made the firm the right private equity partner for PSP. We believe IPC’s relevant expertise and substantial capital support will be critical during this exciting time for the company as we execute against our growth strategy.”
Irving Place Capital’s retail and consumer products investments have included Aéropostale, New York & Company, The Vitamin Shoppe, Seven for All Mankind and Stuart Weitzman.
Rick Perkal, a senior managing director at Irving Place Capital, says: “Pet Supplies Plus is a highly successful, regionally-focused specialty retailer operating in a stable and attractive segment of the consumer economy that has demonstrated consistent growth throughout the recent economic downturn. We believe PSP is ideally positioned to capitalise on growth opportunities through new store rollouts and opportunistic franchise acquisitions.”
The transaction has fully committed debt financing from BNP Paribas, Societe Generale and KeyBanc Capital Markets. BofA Merrill Lynch is acting as exclusive financial adviser to Irving Place Capital in the transaction.
