PetSmart, the US based pet supplies and accessories retailer has acquired fellow online pet store Chewy for $3.35 billion. This, according to tech news website Re Code is the biggest ecommerce deal of all time. Although no financial details have been disclosed about the deal, according to Recode, several sources involved in the deal have confirmed the $3.35 billion price tag. This tops the $3 billion that Walmart paid for Jet.com recently.
Although the deal is now subject to regulatory approval, it is thought that the deal should be concluded in the next few months. Once the deal has been finalised, it will see Chewy.com to continue operating as a separate entity to PetSmart, albeit as a subsidiary of its new owners. Ryan Cohen, founder and Chief Executive of Chief Executive of Chewy.com will stay on in his role. In a statement reported by the Financial Times, president and chief executive of PetSmart said:
“We are focused on improving our customers’ experience in-store and online as we continue to execute against our long-term strategic initiatives. Chewy’s high-touch customer e-commerce service model and culture centered around a love of pets is the ideal complement to PetSmart’s store footprint and diverse offerings. Together, PetSmart and Chewy will provide the most convenient customer experience to a wider base of pet parents across every channel.”
The deal is seen as a perfect match, with PetSmart having over 1500 pet stores in several countries including the USA and Canada whilst Chewy operates fulfillment centres across the USA and employs over 5000 people.
PetSmart’s advisors during the deal included Simpson Thacher & Bartlett, Citigroup Global Markets and Barclays, with All &C and Weil Gotshal & Manges acting on behalf of Chewy. With the ecommerce market becoming ever more competitive, it remains to be seen just how long this deal will remain the biggest ecommerce deal of all time.
The Biggest Ecommerce Acquisitions Of All Time
- Chewy: bought by PetSmart in 2017 for $3.35 billion
- Jet: bought by Walmart in 2016for $3.30 billion
- Tradex: bought by Ariba in 1999 for $1.86 billion
- AsiaNet: bought by Littauer in 2000 for $1.20 billion
- Zappos.com: bought by Amazon in 2009 for $1.13 billion
- Avito: bought by Naspers in 2015 for $1.08 billion
- Lazada: bought by Alibaba in 2016 for $1 billion
- Dollar Shave Club: bought by Unilever in 2016 for $1 billion
- Ebates: bought by Rakuten in 2014 for $1 billion
- NexTag: bought by Providence in 2007 for $830 million
- IronPlanet: bought by Ritchie Bros in 2016 for $760 million
- PayEase:bought by Mozido in 2015 for $750 million
- mySimon: bought by CNET in 2000 for $700 million
- RIghtWorks: bought by ICG in 2000 for $660 million