Sentinel Capital Adds Pet Store Franchise to Portfolio
Retailer Pet Supplies Plus joins the franchise portfolio at Sentinel Capital.
When private equity acquisition news makes the headlines it’s often for a big-name restaurant buy. But as this recent move by Sentinel Capital Partners shows, retail franchises can prove just as attractive.
A New York-based private equity firm, Sentinel acquired 448-unit Pet Supplies Plus, a franchisor and operator of pet specialty stores, from Irving Place Capital, which had owned the brand since 2010. Ranked No. 98 on the Franchise Times Top 200+, Pet Supplies Plus had sales of $916 million in 2017, an increase of 8.54 percent. Marc Buan, principal at Sentinel, cited that growth as a driver behind the purchase, along with the brand’s “expanding footprint and a large white-space opportunity.”
“The pet industry is very attractive due to its stability, growth, and passionate consumer base,” said Buan in an announcement of the deal. “PSP has a strong position in the pet retail segment and a very loyal customer base. Led by a highly committed and talented management team, PSP has delivered consistent performance and steady growth. We are excited to partner with PSP during the next phase of its growth.”
Pet Supplies Plus provides pet food and supplies, and offers grooming and bathing services from its stores in 33 states. Its 448 stores are split evenly between franchised and company-owned locations.
The Pet Supplies Plus acquisition is Sentinel’s 14th franchise investment. Its current franchise portfolio also includes restaurant brands Captain D’s, Fazoli’s, Newk’s Eatery and TGI Fridays; it previously owned Massage Envy, Cottman Transmission Systems and Huddle House, among others.