Pet Supplies Plus will sell itself to Franchise Group in an all-cash transaction valued at approximately $700 million. Pet Supplies Plus operates more than 500 locations, of which nearly 60% are franchised, with more than 185 new stores in various stages of development nationwide.
The pet wellness industry has thrived in the past year as shoppers pampered their pets while sheltering at home. Chewy acquired more customers in the first half of 2020 than it did in all of 2019, and even brick-and-mortar pet retailers thrived — Petco filed for an IPO in November 2020 that ultimately valued the company at $6.4 billion.
Pet retailers that were slow to embrace ecommerce struggled, which led to PetValu shuttering all 358 stores and warehouses in late 2020. However, Petco’s recent ecommerce efforts, including same-day delivery, helped it thrive. Pet Supplies Plus’ own delivery and buy online, pick up in-store (BOPIS) offerings were part of what made it attractive to Franchise Group.
“We look forward to welcoming Pet Supplies Plus, its management team, employees, franchisees and neighbors to Franchise Group when this transaction closes,” said Brian Kahn, President and CEO of Franchise Group in a statement. “Pet Supplies Plus adds another franchise concept with strong unit economics, diversification into an economically resilient and secularly growing pet industry and a brand that has and will continue to experience robust unit expansion from its franchise system.”
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