A merger may be in the works between San Diego-based Petco and another giant in the pet care industry, Reuters reports.
Petco’s private equity owners, TPG Capital and Leonard Green & Partners, have entered into preliminary talks with PetSmart, Inc., according to the report.
TPG and Leonard Green recently registered Petco for an initial public offering in August however they’re also looking into whether to sell the company.
Combining forces with PetSmart, Inc. could create a more lucrative deal, according to the report.
Petco was founded in 1965 and employs more than 25,000 people in the U.S., Mexico and Puerto Rico according to the company’s website. The company's 2014 sales reached approximately $4 billion.
PetSmart, Inc. is based in Arizona, employees 53,000 and reported net sales of more than $7 billion last year.
