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Anonymous ID: 5c631c June 13, 2019, 5:58 p.m. No.6745538   🗄️.is đź”—kun   >>5544 >>5694

PetSmart's online business, Chewy.com, prices IPO at $22 a share, above expected range

*PetSmart acquired Chewy in 2017 for roughly $3 billion to add an online business to complement its store base, as trends shifted online.

*Following the IPO, PetSmart will remain majority owner of Chewy.

 

Chewy.com, the online pet product retailer owned by PetSmart, priced its IPO at $22 per share Thursday, above the expected range, according to a person familiar with the offering.

 

The offering raises just over $1 billion and values the retailer at $8.8 billion. Chewy sold roughly 46 million shares, 5 million more than expected, after upping its expected range to $19 to $21 earlier this week.

 

PetSmart, which is backed by private equity firm BC Partners, acquired Chewy in 2017 for roughly $3 billion to add an online business to complement its store base, as trends shifted online. But as the two business lines diverged, PetSmart transferred part of its stake in Chewy in a move that set the groundwork for a potential IPO.

 

Following the initial public offering, PetSmart will own roughly 70% of the company’s common stock and hold approximately 77% voting power. The two will continue to coordinate purchases, giving both stronger bargaining power, Chewy said in IPO registration documents.

 

It will use proceeds from the offering for working capital and general corporate purposes, according to the filing.

 

Some PetSmart investors likely hope that will include paying down debt. The company’s credit metrics have weakened since acquiring Chewy, which added $2 billion in debt to its balance sheet, according to credit ratings agency Moody’s. The firm estimates that as of February, PetSmart was leveraged at roughly 8.5 times enterprise value to earnings before interest, taxes, deprecation and amortization.

 

Chewy was founded in 2011 by Ryan Cohen and Michael Day. Cohen last year stepped down as CEO of the company, succeeded by Sumit Singh, Chewy’s former chief operating officer, who held prior roles at Amazon Fresh and Dell.

From fiscal 2017 to 2018, it reported a net loss of $268 million, narrowing from a net loss of $338 million. The high costs required to ship heavy pet food have been a drag on the company’s results. It has roughly 20% margins.

Morgan Stanley and JP Morgan are among the under-writers.

https://www.cnbc.com/2019/06/13/petsmarts-online-business-chewycom-prices-ipo.html

Anonymous ID: 5c631c June 13, 2019, 6:43 p.m. No.6745904   🗄️.is đź”—kun

Starbucks EVP's sold $3.81m in shares-June 11-12

 

Cap #1 is today, this is a discretion report as it falls into 'normal' sales however, are these normal times? They are part of option exercise and sale. The option exercise was much larger than the actual sales.

 

Starbucks Corporation specializes in owning and operating coffee shops. The group also develops a coffee roasting activity. Net sales break down by activity as follows:

  • operation of coffee shops (79.7%): as of September, 30, 2018, owned a network of 15,341 coffee shops under the Starbucks, Teavana, Seattle's Best Coffee and Evolution Fresh names;

  • sale of licenses (10.7%): 13,983 licensed coffee shops;

  • other (9.6%): sale of coffee, beverages and food products for companies, hotels, hospitals, airlines, etc.

The United States account for 70.4% of net sales.

Number of employees : 291 000 people.

https://www.finviz.com/quote.ashx?t=SBUX&b=2

 

Panel #2 is a little out of date but you get the idea.