Press release: Sentinel Capital Partners
Sentinel Capital Partners, a private equity firm that invests in promising companies at the lower end of the midmarket, today announced the acquisition of Pet Supplies Plus (“PSP”), the third largest pet specialty chain in the U.S. and the largest “independent” pet-specialty operator. Terms of the transaction were not disclosed.
Founded in 1988 and headquartered in Livonia, Michigan, PSP is a leading franchiser and operator of pet-specialty stores that provide a customer-centric shopping experience in smaller stores that have a neighborhood feel. PSP blends the advantages of national scale with those of a friendly, local neighborhood pet store. Stores have a streamlined design, which makes them easy to navigate, and a wide assortment of natural foods, hard goods, and pet services. Serving 33 states, PSP’s system comprises 448 stores, split evenly between franchised and company-owned locations. PSP also operates a distribution network with significant buying power that provides scale, profitability, and competitive operational advantages to its franchisees. Pet Supplies Plus is recognized by Entrepreneur magazine as the top full-service pet supplies franchise for its excellent performance, financial strength and stability, growth rate, and system size.
“PSP is the #1 pet franchise system in the U.S. with an expanding footprint and a large white-space opportunity,” said Marc Buan, a Sentinel Principal. “The pet industry is very attractive due to its stability, growth, and passionate consumer base. PSP has a strong position in the pet retail segment and a very loyal customer base. Led by a highly committed and talented management team, PSP has delivered consistent performance and steady growth. We are excited to partner with PSP during the next phase of its growth.”
“PSP combines the convenience, expertise, and high-touch experience of a local neighborhood pet store with the curated selection and value of a national player,” said Chris Rowland, CEO of Pet Supplies Plus. “We look forward to partnering with Sentinel, a firm with deep franchising expertise, to help us drive revenue growth and geographic expansion.”
Sentinel has broad experience investing in franchise businesses. Sentinel has acquired 13 franchise investments over the course of its history, including Border Foods, a franchisee in the Taco Bell system; Captain D’s, a franchiser and operator of more than 500 Captain D’s seafood restaurants; Checkers, a franchiser and operator of dual drive-thru quick service restaurants; Cottman Transmission Systems, a franchiser of automotive transmission centers; Falcon Holdings, the largest franchisee of Church’s Chicken restaurants; Fazoli’s, a regional franchiser and operator of Italian fast-casual restaurants; Interim Healthcare, the nation’s largest provider of home healthcare and supplemental healthcare staffing services; Huddle House, a franchiser of family dining restaurants; Massage Envy, the nation’s largest franchiser of therapeutic massage services; Newk’s Eatery, a franchiser and operator of fast-casual restaurants in the Southeast; Southern California Pizza Company, the exclusive Pizza Hut franchisee in the greater Los Angeles market; TGI Fridays, a global franchiser and operator of iconic American-style bar and grill restaurants; and Tony Roma’s, a franchiser of casual dining restaurants.