Powerful merger in the USA

The two North American pet store chains Pet Valu and Pet Supermarket have merged to become the third-biggest player in the market with over 930 stores in Canada and the USA. Pet Valu operates more than 770 stores across Canada and the USA. Pet Supermarket is the largest small-format speciality retailer of pet food and pet-related supplies based in the south-eastern USA and operates 165 stores. The merged organisation is to be operated under the name Pet Retail Brands. Pet Valu and Pet Supermarket were companies that belonged in the past to the investor group Roark Capital. The Roark Capital Group focuses on consumer and business services sectors. Pet Valu was taken private by an affiliate of Roark Capital in Au­gust 2009. Pet Supermarket was acquired by an affiliate of Roark Capital in April 2015. Pet Valu will remain headquartered in Markham/Ontario and Pet Super­market operations will continue to be based in Sunrise/Florida. Despite the merger, the two store chains have indicated that they will continue to operate independently in the market. Details of the agree­ment and the purchase price have not been disclosed.
Thomas McNeely will become president and CEO of Pet Retail Brands upon the closing of the transaction. McNeely has been CEO of Pet Valu since August 2009. "Together, both brands will benefit by sharing infrastructure, resources and best practices to deliver superb value to both Pet Valu and Pet Supermarket's loyal customers, committed employees and busi­ness partners," said Ezra Field, managing director of Roark Ca­pital, in a statement.

Last year there was talk in the USA of a merger between the big two chains Petco and PetSmart, but the merger failed to materialise. Overlaps between the existing outlets of both chains were con­sidered to be one of the reasons for the failure of the merger bet­ween Petco and PetSmart. While the two giant players are re­pre­sented in virtually all corners of North America, there are few or no overlaps between Pet Valu and Pet Supermarket with regard to store locations. Both chains currently only cover the north- and south-eastern regions of the USA. In addition, Pet Valu has a strong presence in Canada. Together Pet Valu and Pet Supermarket can extend their stores over the…