Activist investors got their way with PetSmart and Jana Partners scored a fat premium compared to its buy-in price, when private equity firms battled it out to acquire PetSmart earlier this year. Now, its sale price — at more than 6x Ebitda, a threshold banks have been warned to not lend past — seems to justify investors’ claims that the pet sector is hot. All of a sudden, public markets have been deprived of pet companies, between PetCo’s 2006 sale, and PetSmart’s auction. Dealmakers have latched onto the fact that pet ownership in the U.S. is at an all-time high, and they’re cashing in.
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