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US pet supplies retailer in largest PE deal of the year

PetSmart okays US$8.7b buyout following pressure from two hedge funds

PetSmart has long been seen as a good target for private equity firms, given its relatively strong cash flow and low debt. It has over 1,300 stores in the US, Canada and Puerto Rico.

New York

THE biggest private equity deal of 2014 - in a year of huge takeovers of cable providers and drug manufacturers - is a bet on the lucrativeness of dog food and catnip.

PetSmart agreed on Sunday to sell itself to a group led by investment firm BC Partners for about US$8.7