Does Petco Own Chewy? (2023)

0
94

Some large businesses take control of smaller businesses. Sometimes they carry some share of that business. Petco and Chewy are pet stores. Their genre of the industry is to deal with pets and pet accessories. Does Petco own Chewy? Do Petco and Chewy have the same ownership? Who owns Petco? Who owns Chewy? All these and related questions are mentioned below.

Does Petco Own Chewy?

No, Petco does not own Chewy. Petco is not the parent company of Chewy. Although both companies are pet companies yet, both work differently. They don’t share common precedence. 

Chewy is owned by another pet company, which is PetSmart.

What is Chewy?

Outside Fort Lauderdale, the company was founded in Dania Beach, FL. So it is headquartered in Florida. Two owners, Ryan Cohen and Michael Day, founded it in 2011. This store has been giving pet supplies. Later this company introduced pet pharmacies. The major function of the pharmacy was to produce medicated prescriptions for pets.

It has been operating in the United States, offering several services to Americans. 

Who owns Chewy?

Initially, Chewy was introduced in the market by the name of Mr Chewy. In 2011 Ryan Cohen and Michael Day initiated the step and introduced this genre of company. These two founders made a strategic way to uplift their company by hiring those employees who once remained employees in larger companies like Amazon, PetSmart, or Whole Foods Market. Despite growing slowly, the company made a revenue of $423 million in 2015. In 2017, this number increased to $2 billion.

Bidders of Chewy;

At that time, two companies approached Ryan Cohen to buy it. Petco bid and offered that it would pay the whole amount in parts that were rejected. Later PetSmart approached Ryan Cohen. It did with the offer that it would pay all cash at once. Chewy would remain a separate business entity through this deal. It was accepted. 

Bond Between PetSmart and Chewy;

In 2017, a deal was signed between PetSmart and Chewy. According to this deal, PetSmart would buy Chewy for $3.35 billion. The deal was signed. The Ownership of Chewy went to PetSmart, and it was the largest acquisition of an e-commerce business at that time. 

BC Partners Inquisition;

Later, PetSmart transferred 20% of the company’s acquisition to another company. That company was BC Partners, a private equity firm or company. So 20% of the ownership share was handed over to BC Partners by PetSmart. Later BC Partners bought PetSmart. So the inquisition of the company indirectly goes to them. At that time, Cohen remained the Chief Executive Officer of the company. It was considered a subsidiary of PetSmart till then. After its inquisition, it progressed and raised its revenue to $3 billion. After that, Chewy expanded its store by adding pharmacies in stores. These stores provide pet-targeted prescriptions to their customers.

Who owns Petco?

Petco Health and Wellness Incorporation, or simply Petco, is another pet retailer which has been offering several services related to pets. Besides providing pet-related services and accessories, it has also provided young living animals, which can be purchased from retail stores or corporate stores. Formerly it traded as Petco Animal Supplies Incorporation, which was later altered to Petco Health and Wellness Incorporation. It is a publicly-traded company. It was initially founded as a mail-and-order store by Walter Evans in San Diego, California. Later it progressed and came into shape, which we witness today. 

Petco Ownership;

Knowing the ownership of Petco, we can analyze that the same persons or organization does not own Petco and Chewy. This company was initially owned by Spectrum Group Incorporation and Thomas H. Lee Company in 1998. In 2000, it was resold to another group. They were known as Leonard Green and Partners and Texas Pacific Group. They kept its hold till 2016. After that, in 2016, it was bought by CVC Capital Partners and Canada Pension Plan Investment Group. Now Petco has been owned by two major owners. They carry half-half a share of the company. These two owners of Petco are mentioned here.

  • CPP investment board
  • CVC Capital Partner 

Both these investors are carrying half and equal shares in the company. Petco has a total of 1500 stores throughout the United States.

Petco Subsidiaries

Although Petco does not own Chewy yet, it has many other subsidiaries

  • Vetco
  • PupBox, Inc.
  • International Pet Supplies and Distribution, Inc.
  • Petco Holdings, Inc.
  • PETCO Southwest, Inc.
  • PM Management Incorporated
  • Pet Concepts International
  • 17187 Yukon Inc.
  • E-Pet Services

Conclusion;

Petco does not own Chewy. Yet it is owned by PetSmart, which is another pet retail company. PetSmart has owned Chewy for many years. Moreover, Petco has many other subsidiaries rather than Chewy. All these companies provide pet services in their retail stores.

LEAVE A REPLY

Please enter your comment!
Please enter your name here