Kkr Sells 119m Pets At Home Shares

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KKR sells 119m Pets at Home shares
11th October 2017

By Karen Pickwick

Private equity firm Kohlberg Kravis Roberts has sold 61 million Pets at Home shares worth £119m – sending shares in Britain’s biggest pet retail chain down 7.7% in London trading.

The Financial Times reports that the move drives KKR’s stake in the UK company down to only 12.4%, according to a placement document filed with regulators. Yesterday’s drop extends the year-to-date shares fall to 16.5%, according to FactSet data.

Toy ‘R’ Us owner KKR bought Pets at Home from Bridgepoint in February 2010 for £955m, and then issued shares about four years later. The US private equity group told the FT that Pets at Home would not receive proceeds from its share sale. Its remaining holding of about 62 million shares will be subject to a 60-day lock-up period.

Pets at Home set the price for its Initial Public Offering at £2.45 per share in March 2014. Based on that offer price, the floatation gave the group a market value of £1.22bn.

Pets at Home staff were allocated 685,306 shares, corresponding to £1.7m, and KKR and other shareholders were granted 30 million shares.

Pets at Home revenue grew 5% to £256.5m in the first quarter of this year – which it attributed to strong demand for its veterinary and pet grooming services.

The 439-chain said services’ revenue grew 18.8% to £40.1m, with vet practice income delivering 19.7% to £16.2m for the 16 weeks to July 20. Merchandise revenue grew 2.8% to £216.4m.

CEO Ian Kellett said in August that the group was pleased with its ‘positive start’ to the year, delivered through another period of strong growth in the vet group and further momentum in merchandise trading.

Pets at Home aimed to open 10 superstores, 40-50 vet practices and 40-50 grooming salons this year.