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PetSmart acquires for about $3.35 billion

Staff Writer |
Pet supplies retailer PetSmart has agreed to acquire Chewy, an online retailer of pet food and supplies.

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Financial terms of the deal were not disclosed, but tech media site Recode valued the deal at $3.35 billion. The amount exceeds the $3.3 billion paid by Wal-Mart Stores for in August 2016.

PetSmart noted that Chewy's position in the growing, but under-penetrated online pet retail segment will complement its footprint in brick and mortar, with over 1,500 stores and 55,000 associates across North America.

Dania Beach, Florida-based Chewy was founded by Ryan Cohen and Michael Day in 2011.

Chewy currently has more than 5,000 employees in their home office, Boston office and fulfillment centers in Pennsylvania, Indiana, Texas and Nevada. The company offers around 20,000 items for dogs, cats and other pets.

The acquisition is expected to close by the end of PetSmart's second fiscal quarter of 2017.

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