Petco (Dividend Recap Era)

exited

Retail — Leonard Green / TPG (2010 LBO)

Deal Terms

Entry Year2010

Entry EV$2.4B

Entry Multiple9x

Leverage6x

Debt Amount$1.44B

Outcome

Exit Year2016

Risk Metrics

LTV (est.)60%

Debt / EV0.60x

Notes

Leonard Green/TPG took Petco private for $2.4B (2010). Multiple dividend recaps extracted hundreds of millions. Then flipped to CVC/CPPIB for $4.6B (2016). IPO'd again Jan 2021. Stock crashed 75%+ from peak. Third PE buyout cycle. Each round of PE ownership loads more debt, extracts dividends, and the company gets weaker. Serial dividend recap poster child.

Sponsor

TPG Inc.$230B AUM