The $8.7 billion buyout of Phoenix-based PetSmart Inc. became a done deal Wednesday, along with some immediate changes to top leadership.
As a result of the deal closing, private equity firm BC Partners, the new owner, has taken PetSmart private and off of the Nasdaq stock exchange.
BC Partners also appointed Michael Massey as PetSmart’s new CEO and president. Massey most recently served as CEO of Payless ShoeSource’s parent, Collective Brands. His employment there ended in 2012 when Collective Brands was sold.
“I am excited to work closely with the PetSmart team to bring the brand ever closer to the hearts of pet parents everywhere,” Massey said in a prepared company statement. “I’m confident that PetSmart’s future will be one defined by growth, increased opportunities for our team and closer emotional connections with our customers.”
Appointing new executives in a buyout situation such as this is common and those being replaced usually receive a big payout on their way out the door.
PetSmart’s departing CEO and President David Lenhardt is receiving a roughly $24 million exit package as part of the buyout deal, according to a company filing with the Securities and Exchange Commission.
Lenhardt stepped down after about two years as president and CEO and 15 total years with the company.
“My 15-year journey with PetSmart is filled with wonderful memories of our passionate associates who represent the best and brightest in retail,” Lenhardt said in the company statement. “I am confident that PetSmart will continue to lead the industry by creating more moments for people to be inspired by pets."
But what these changes at the corporate level mean for PetSmart’s nearly 1,400 stores and 54,000 employees remains to be seen.
