The UK’s passion for pets provides potential windfall for KKR

Apart from tea and the ability to queue, the British are well known for their love of family pets. This passion has helped Pets At Home, the Cheshire, UK-based chain of pet stores, continue to grow substantially throughout the last few years despite the tough times fared by many other UK retailers.

This week has seen speculation emerge that Kohlberg Kravis Roberts (KKR), the US private equity firm which acquired Pets At Home from Bridgepoint Capital back in early 2010 for £955m, is considering an IPO for the company early next year. Reports are placing a value of up to £1.5bn if a listing of the firm proceeds, as speculated, on the London Stock Exchange.

If the rumours are correct then this would be another UK high street chain potentially joining B&M Retail, Bargain Booze and House of Fraser, all looking to capitalise on the current buoyancy of the capital markets for retailers showing strong and consistent growth.

Filed under: private equity, pets, retail, IPO