Roark in talks to expand pet exposure with Pet Supermarket

Roark Capital Group is in talks to buy Pet Supermarket Inc., according to a source and an FTC filing.

Roark, which already owns Pet Valu, has been working to close a deal for Pet Supermarket, a banker said. It’s unclear how much Roark is paying for the company.

The seller is Charles West Jr. who founded Pet Supermarket more than 40 years ago, the FTC filing said.

Sunrise, Florida-based Pet Supermarket operates more than 150 stores. The company sells food and supplies for dogs, cats, fish, reptiles and small pets, according to its website. The company produced $213 million in 2011 revenue, a report from the Sun Sentinel said.

In 2009, Roark acquired Pet Valu, a pet supplies retailer in Toronto. Pet Valu then bought Bosley’s Pet Food Plus Inc., a pet food and supplies retailer based in Vancouver, in 2010.

Roark’s investment in Pet Supermarket would surprisingly come from its third fund, the FTC website said. Roark’s third pool closed at $1.56 billion in 2012. The PE firm has since raised its fourth fund, Roark Capital Partners IV, which closed in January at $2.5 billion.

Fund III was generating a 10.17 percent net IRR as of Sept. 30 and a 1.1x total value multiple, according to performance data from the Washington State Investment Board. Performance data for Fund IV was not available.

Roark, an Atlanta private equity firm, invests in franchise businesses like restaurants and retail. It owns Focus Brands, the parent of Auntie Anne’s, Carvel and Cinnabon. Roark also targets sectors such as consumer products, direct marketing and environment services. The PE firm will invest between $15 million equity to $600 million equity per deal, the firm’s website said.

Roark Capital, Pet Valu and Charles West could not immediately be reached for comment.

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