Pet Valu agrees to $143.7M takeover offer July 8, 2009
Posted by businessnewss in businessnewss.wordpress.com.Tags: agrees, OFFER, takeover, Valu
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Pet Valu Inc. said Monday it has agreed to be acquired by Roark Capital Group, an Atlanta-based private equity firm, for $143.7 million.
Under the terms of the takeover, shareholders of PVCI, which is Pet Valu’s publicly traded Canadian operating subsidiary, will get $13.68 in cash for each of their exchangeable shares.
Shares of Pet Valu closed up 45 cents, or more than three per cent, at $13.50 in trading on the Toronto Stock Exchange.
Founded in 1976 and based in Markham, Ont., Pet Valu sells pet food and supplies. The company has 295 corporately owned and franchised stores in Ontario and Manitoba, and 61 U.S. stores in Pennsylvania, New Jersey, Maryland and Delaware.
Ian Ross, Pet Valu’s chairman, said the deal came after the company conducted an extensive review of its options.
“During that process, Pet Valu conducted an extensive canvass of potential buyers of the business, and the boards concluded that the transaction with Roark represents the best alternative for shareholders,” he said.
“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.”
