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KKR, CD&R preparing $7.5 billion for PetSmart

Staff writer |
KKR & Co and Clayton, Dubilier & Rice have teamed up to take PetSmart private for more than $7.5 billion, people familiar with the matter said and Reuters reported.

KKR and CD&R are planning to submit a joint bid for PetSmart next month, the people said. Apollo Global Management and BC Partners are also separately considering offers, the people added.

A deal for PetSmart would represent the biggest leveraged buyout of the year. KKR's and CD&R's collaboration underscores the big size of the equity check involved in the deal. Buyout firms have also been reaching out to fund investors asking them to co-invest in the deal alongside the funds, the people said.

The latest development comes as activist investor Jana Partners, which has a 9.8 percent stake in PetSmart, considers nominating its own slate of directors to the company's board if it is not satisfied with the outcome of the auction, the people said.

The sources asked not to be identified because the talks are confidential. Petsmart said in August it would explore a potential sale of the company

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