PetSmart’s LBO Price Reveals Appeal of Unloved Stock: Real M&A

Shareholders (PETM) of a stock that no analysts have been recommending just got a great deal.

In a year that’s had the fewest U.S. leveraged buyouts since the financial crisis, PetSmart Inc. was able to clinch a transaction. BC Partners is taking the pet-supplies chain private in a deal valued at about $8.6 billion, or 9.2 times its earnings before interest, taxes, depreciation and amortization. That’s 16 percent higher than the median multiple in U.S. retail LBOs of the past five years, according to data compiled by Bloomberg.

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