Pets at Home to raise £275 million in stock market flotation
With shares to be offered to retail investors and institutions, the company plans to raise £275 million from the offering which it will use to reduce its indebtedness. In addition, it will use £325 million from new banking facilities to cut debt.
Pets at Home staff will be able to apply to purchase shares at the offer price, with tranches of either £250, £500 or £750 worth of shares available to employees.
The company operates 369 UK stores as well as 246 small animal veterinary surgeries, principally under a joint venture model using the Companion Care and Vets4Pets brand names. The group also operates 116 in-store Groom Room grooming salons.
Pets at Home said it has invested in excess of £60 million in its operations over the last three financial years to support the future growth of the business. The company is aiming for a target portfolio of over 500 stores, 700 veterinary practices and 300 Groom Rooms.
In the 40 weeks to 2 January 2014, like-for-like sales grew by 2.4% year-on-year with total revenue up 11.7%. Underlying EBITDA increased by 11.1% to £87 million.
For the year ending 27 March 2014, the company is forecasting underlying EBITDA of not less than £110.2 million.
Tony DeNunzio, non-executive chairman of Pets at Home, said: "Pets at Home is the clear leader in an attractive market and is led by an experienced and passionate management team with a proven track record of delivering strong revenue and EBITDA growth. The significant investment that has been made over the past few years provides Pets at Home with very strong foundations and positions the company well for the next stage of its development in the public market.”
Pets at Home also announced that it has appointed Dennis Millard as deputy chairman.
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