February 19, 2014 / 7:52 AM / 4 years ago

Pets at Home to raise 275 mln stg in London shares listing

LONDON, Feb 19 (Reuters) - Pets at Home, the British seller of pet food, pet-related products and pet accessories, plans to list its shares on the London Stock Exchange, joining a spate of store groups seeking flotations as the outlook for consumer spending improves.

The firm, mainly owned by U.S. private equity group KKR , said on Wednesday it was seeking proceeds of about 275 million pounds ($459 million) from a share offer to reduce its indebtedness.

It said KKR, certain other shareholders and members of the management team may also realise a part of their investment in Pets at Home through the repayment of shareholder loans and a sale of new shares.

Pets at Home said there would be a minimum free float of at least 25 percent of the group’s issued share capital.

The firm said the 275 million pounds proceeds from the share offer together with proceeds of 325 million pounds from a new senior facilities agreement will repay all amounts outstanding under an existing senior facilities agreement.

Pets at Home said it would have net debt at admission of 275 million pounds.

Founded in 1991 the firm trades from 369 stores across the UK and 246 small animal veterinary surgeries, principally under a joint venture model using the Companion Care and Vets4Pets brand names. The group also runs 116 in-store grooming salons.

It wants over 500 UK stores, more than 700 veterinary practices and in excess of 300 groom rooms in the medium term.

In the 40 weeks to Jan. 2, 2014 total revenue grew 11.7 percent year-on-year, like for like revenue grew 2.4 percent and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was up 11.1 percent.

The listing of Pets at Home is one of many expected in Britain’s retail sector in 2014. Russian hypermarket chain Lenta, newsagent and convenience store McColl‘s, online domestic appliances retailer AO and discount retailer Poundland have all said they plan to float.

Fat Face, House of Fraser, Boohoo.com and B&M are also expected to come to market later this year.

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