Pet Valu Holdings prices $275M IPO at $15-19 per share at $1.1-1.3B valuation

CPE News (6/8/2021) – Pet Valu Holdings Ltd., a portfolio company of Roark Capital, has filed an amendment to its preliminary base PREP prospectus for the proposed initial public offering of common shares.

Pet Valu Holdings expects to price the offering at between $15.00 and $19.00 per share for gross proceeds of $275 million.

Based on an offering price of $15.00, $17.00 or $19.00, being the lowpoint, midpoint and highpoint of the estimated price range, approximately 18,333,000, 16,176,000 or 14,473,000 shares, respectively, will be offered pursuant to the offering.

Upon completion of the pre-closing transactions, Pet Valu Holdings will have approximately 54.1 million shares issued and outstanding.

At the proposed pricing, Pet Valu would be valued between $1.1B to $1.3B on a non-diluted basis, assuming no exercise of over-allotment option.

Roark Capital took Pet Valu, Inc. and Pet Valu Canada Inc. (formerly TSX: PVC) private for approximately $144 million in August 2009.

Upon completion of the pre-closing transactions and the offering, and assuming (i) no exercise of the over-allotment option, and (ii) an offering price of $15.00, $17.00 or $19.00, Pet Retail Brands LP, an entity controlled by Roark Capital, will own or control approximately 74%, 76% or 78% of the issued and outstanding shares.

Founded in 1976, Markham, Ontario based Pet Valu is Canada’s leading small format specialty retailer and wholesale distributor of pet food and pet-related supplies with over 600 corporate-owned and franchised locations across the country.

photo credit: Pet Valu