Filing Flows › Petco Health & Wellness Company (WOOF) › Takeover & LBO
Is Petco Health & Wellness Company (WOOF) a takeover target?
A leveraged buyout at today's price plus 30% ($3.79 a share) would return about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $1.69 a share (−42% against today's $2.92). Historically 4.8% of companies with its figures were bought within a year (0.95× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $3.79 | today's $2.92 plus 30% |
| × shares | 290.5 million | |
| = Equity value | $1.1B | |
| + Debt refinanced | $1.5B | |
| − Cash | $293M | |
| = Enterprise value | $2.3B | 7.0× EBITDA of $330M |
| Fees | $46.2M | 2% of the price |
| New debt | $1.5B | 4.5× EBITDA at 7.65% a year; the limit that binds: 65% of the price |
| Buyer's own money | $854M | 36% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $5.9B | $326M | $115M | $73.2M | $1.4B |
| Year 2 | $5.9B | $325M | $109M | $77.2M | $1.3B |
| Year 3 | $5.9B | $328M | $103M | $78.3M | $1.3B |
| Year 4 | $6.0B | $334M | $97.3M | $79.8M | $1.2B |
| Year 5 | $6.2B | $344M | $91.2M | $82.9M | $1.1B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 6.2× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $2.1B | |
| − Debt left | $1.1B | |
| = Buyer's equity | $1.0B | |
| Money multiple | 1.21× | on $854M put in |
| Buyer's yearly return (IRR) | 3.9% |
Price against return
What the buyer makes at other premiums over today's $2.92; the IRR reaches 20% at $1.69 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $3.21 | 8.3% |
| 20% | $3.50 | 6.1% |
| 30% | $3.79 | 3.9% |
| 40% | $4.08 | 1.6% |
| 50% | $4.37 | −0.7% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $6.0B | |
| EBITDA, last 12 months | $330M | 5.5% of revenue |
| Depreciation and amortization | $197M | |
| Capital spending | $136M | |
| Debt | $1.5B | |
| Cash | $293M | |
| Share price | $2.92 | on Nov 6, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows -1.3% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 21% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Petco Health & Wellness Company would cost about $3.86 a share, $1.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $3.50 | $1.0B |
| Median | 32.5% | $3.86 | $1.1B |
| High end (a quarter paid more) | 51.8% | $4.42 | $1.3B |
The odds, from history
Historically 4.8% of companies with its figures were bought within a year (0.95× the average). Its figures put it in decile 5 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Petco Health & Wellness Company's latest quarter
Petco Health & Wellness Company, Q2 FY27: revenue $1.5B (0% year over year), operating margin 3.2%, net earnings $38.7M, operating cash flow $162M. The chart follows the revenue to costs, profit and cash.
Questions
Is Petco Health & Wellness Company being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Petco Health & Wellness Company?
A leveraged buyout at today's price plus 30% ($3.79 a share) would return about 4% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $1.69 a share (−42% against today's $2.92).
What would a takeover of Petco Health & Wellness Company cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Petco Health & Wellness Company would cost about $3.86 a share, $1.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.