Company to continue exploring new ways to enhance its portfolio of innovative pet products
The combination of full stakeholder support, massive deleveraging of the balance sheet and $100 million of new money investment will enable a strong transition into the Company's next phase of growth
ARLINGTON, Texas, - March 20, 2024 - Petmate® (the "Company"), the leading supplier and manufacturer of pet products, today announced it has reached a comprehensive agreement with 100% of its lenders, which will ensure a sustainable long-term capital structure that will act as a strong foundation for the Company's future.
Once complete, the transactions contemplated by the agreement will reduce the Company's debt by over 80%, eliminating over $600 million of funded debt and infuse $50 million of new equity capital into the Company. This infusion builds on a previously injected $50 million of new capital from the Company's lenders to further support the business and deleverage its capital structure, representing a total new money investment of $100 million. Following the reorganization, the lender group, which is comprised of sophisticated private equity and credit institutional investors, will own 100% of the equity of the Company.
Petmate is excited to lean into this next chapter and continue expanding its high caliber portfolio of innovative products. The Company remains committed to serving old and new customers with a focus on providing pet owners with solutions to keep their pets safe and happy.
"When reflecting on the past year, I am proud of all that we have accomplished as an organization. We have made significant improvements in our operational performance and continue to innovate to deliver for our customers and improve pets' quality of life. Now, we will have the financial structure to match the strength of our business and provide us the financial foundation needed to continue to grow," said Alice Tillett, Chief Executive Officer of Petmate.
Tillett continued, stating, "We appreciate the support of our various financial investors and their confidence in the future of Petmate. I am confident that this will provide Petmate the foundation it needs for the long term. Finally, I want to emphasize my gratitude for our talented Petmate employees, vendors, partners and loyal customers. We are excited for the future of Petmate and believe that the best is yet to come."
"On behalf of the lender group, we are pleased to support Petmate, its employees, customers and vendors in maximizing the many opportunities that lie ahead for the Company," said Stan Parker, Founding Partner of Gamut Capital Management. "The continued support of our lender group demonstrates our confidence in the business. The Company has proven its position as an industry leader and go-to partner in the markets it serves, and we are confident this action will further fuel its long-term business goals. We look forward to seeing all Petmate will be able to accomplish with a strengthened balance sheet."
Petmate is represented in this matter by Milbank LLP as legal counsel, FTI Consulting as financial advisor and PJT Partners as investment banker. The first lien lender group is represented by Gibson, Dunn & Crutcher LLP as legal counsel and Houlihan Lokey as investment banker. The second lien lender group is represented by Ropes & Gray LLP as legal counsel and Lazard as investment banker.
About Petmate
Founded in 1959 as Doskocil Manufacturing, Inc., Petmate, headquartered in Arlington, Texas, is passionate about providing fun, trusted quality products worldwide to enhance the lives of pets and their families. The company's vision, to be the worldwide leader of solutions and excellence in the pet industry, encapsulates its commitment to deliver award-winning, innovative ideas daily to each of its product categories including bedding, kennels, dog houses, feeding and watering products, litter maintenance products, toys, collars, leads, travel, and more. Petmate's portfolio of pet, family-favorite brands include Chuckit!®, Pet Qwerks®, Healthy Chews™, Gamma2®, JW® and, La-Z-Boy®. For more information, visit petmate.com.