CPPIB teams with CVC Capital Partners in US$4.6B takeover of Calif.-based Petco

SAN DIEGO – The Canada Pension Plan Investment Board is teaming with a private equity group in a US$4.6-billion takeover Petco Animal Supplies Inc., a California-based specialty retailer of premium pet food, supplies and services.

Under the deal, the CPPIB and CVC Capital Partners will jointly acquire the company from a group of investors led by TPG and Leonard Green & Partners.

The acquisition is expected to close in early 2016.

Based in San Diego, Petco operates more than 1,400 locations across the United States, Mexico and Puerto Rico, along with an e-commerce platform.

Shane Feeney, managing director and head of direct private equity for CPPIB, said the investment “aligns well with CPPIB’s strategy to invest in leading retail businesses with strong omnichannel capabilities.”

“We look forward to working alongside one of our long-standing partners, CVC, to leverage our collective retail expertise in helping to build further value in the business,” Feeney said.

The CPPIB invests money on behalf of the 18 million contributors and beneficiaries of the Canada Pension Plan. As of June 30, it managed assets of $268.6 billion.