The £230 million sale of Pets at Home to private equity firm Bridgepoint in July 2004, delivered cash proceeds to 3i of £85 million, including a £12.5 million dividend on exit, a 3.5 times cash multiple on our investment.
3i supported Pets at Home, a specialist retailer for pets and pet products, over eight years.
When 3i first invested in 1996 to support organic growth and back the founder Anthony Preston, a 3i alumnus and proven entrepreneur, the company had 15 stores and employed 100 people.
In 1999, 3i invested again to fund the acquisition of the company's main competitor, PetSmart from its US parent. By 2004, Pets at Home had 150 out-of-town stores across the UK, employed 2,700 people and generated a turnover of £218 million in the year to March 2004.
Pets at Home is a good example of 3i supporting organic growth, a transformational acquisition, adding considerable value through the introduction of a non-executive director and helping to manage a successful exit process.
