Pets. Who knew. Recode reported it first:
PetSmart has made the biggest e-commerce acquisition in history, snatching up fast-growing pet product site Chewy.com for $3.35 billion, according to multiple sources familiar with the deal.
The deal is a huge one by any standard — bigger than Walmart’s $3.3 billion deal for Jet.com last year — and especially for a retail company like PetSmart that was itself valued at only $8.7 billion when private-equity investors took it private in 2015.
For what it’s worth, one source told Fortune that the $3.35b price tag is inaccurate.
It is quite the year of acquisitions in the US so far. After eBags going to Samsonite and Jet.com/Walmart’s ongoing shopping spree, this one is special: it’s the biggest acquisition yet for online retail. Last year’s acquisition of Jet.com by Walmart for $3 billion held that crown until now.
Chewy.com was only founded in 2011 but it already grew to generate over $880 million in sales in 2016 and the company was projecting to achieve over $1.5 billion this year. […]
Cohen had said that his goal was to build Chewy.com into a $10 billion business, though now, he will have to aim for that target under PetSmart’s watchful eye. Following the closing of the deal, PetSmart said Chewy.com will still be led by Cohen and will operate “largely” as an independent subsidiary.
More recent e-commerce acquisitions:
- Stock Market Star Boohoo Is Expanding With Acquisitions of PrettyLittleThing & Nasty Gal
- Samsonite Pulls a Unilever and Snaps up eBags for $105 Million
- It’s the First of Many to Come: Walmart Acquires ShoeBuy For Jet.com
- ModCloth Is the Newest Entry to Walmart’s ‘Online Retail Holding Without Strategy’
- Amazon to Acquire Middle Eastern Online Retailer Souq After All
- In a Break with Tradition, Zalando Acquires First Retailer
- The Headscratcher That Is Marc Lore’s Online Strategy for Walmart
- Dollar Shave Club, Jet.com & the Rise of $1B+ Acquisitions by ‘Non-Tech’ Companies