Confirmed: Petz and Cobasi enter into a merger agreement
Joining forces will result in a Brazilian pet retail chain with nearly 500 stores. GlobalPETS has the details.
The combined entity resulting from the merger aims to become a national pet platform offering a unique value proposition for Brazilian pet parents.
The new entity, with 494 stores in 140 Brazilian cities, is expected to generate R$6.9 billion ($1.3B/€1.2B) in net revenue and R$464 million ($84.9M/€77.2M) in earnings before interest, taxes, depreciation, and amortization (EBITDA).
“The transaction will result in a substantial improvement in our customers’ experience by integrating the best practices of Petz and Cobasi,” reads a statement issued by Petz.
Paulo Nassar, the Founder and CEO of Cobasi, will lead the combined company as CEO. Sergio Zimerman, Founder and CEO of Petz, will take on the role of Chairman of the Board.
Next steps
The new entity will be majority-owned by Petz’s shareholders (52.6%). Cobasi will own the remaining 47.4% of the company.
According to the merger agreement seen by GlobalPETS, Petz will become a subsidiary of Cobasi.
The transaction still needs the green light from the companies’ shareholders in general meetings and the Administrative Council for Economic Defense (CADE), Brazil’s competition regulator.
XP, one of Brazil’s leading financial market consulting firms, suggests that authorities may require the closing or selling of some stores in order to approve the merger.
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