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PROSPECTUS
PETCO ANIMAL SUPPLIES, INC.
94,233 Shares of Common Stock, Par Value $.0001 Per Share
This Prospectus relates to 94,233 shares of common stock, par value
$.0001 per share (the "Common Stock"), of Petco Animal Supplies, Inc., a
Delaware corporation (the "Company"), which may be offered from time to
time by certain stockholders of the Company (such holders being hereinafter
described as the "Selling Stockholders"). The shares of Common Stock to be
registered hereunder are hereinafter referred to as the "Securities." The
Selling Stockholders acquired the Securities through the exercise of
options to purchase the Common Stock in December 1997 through March 1998,
which options were acquired by the Selling Stockholders in connection with
the acquisition by the Company of a company owned and operated by certain
of the Selling Stockholders.
All of the Securities are to be offered for the account of the
Selling Stockholders. The Selling Stockholders, directly or through
agents, dealers or underwriters, may offer and sell from time to time all
or any part of the Securities held by each of them in amounts and on terms
to be determined or at quoted prices then prevailing on the Nasdaq National
Market. To the extent required, the amounts of the Securities to be sold,
purchase prices, public offering prices, the names of any agents, dealers
or underwriters, and any applicable commissions or discounts with respect
to a particular offer will be set forth in an accompanying Prospectus
Supplement or, if appropriate, a post-effective amendment to the
Registration Statement of which this Prospectus is a part. The Selling
Stockholders reserve the sole right to accept and, together with any agent
of the Selling Stockholders, to reject in whole or in part any proposed
purchase of the Securities. The Selling Stockholders will pay any sales
commissions or other seller's compensation applicable to such transactions.
The Selling Stockholders and agents who execute orders on their behalf may
be deemed to be underwriters as that term is defined in Section 2(11) of
the Securities Act of 1933, as amended (the "Securities Act"), and a
portion of any proceeds of sales and discounts, commissions or other
seller's compensation may be deemed to be underwriting compensation for
purposes of the Securities Act. Certain of the Selling Stockholders may
pledge or otherwise encumber shares covered by this Prospectus pursuant to
agreements with lenders, and to the extent such shares subsequently become
the property of such lenders pursuant to such agreements, such shares may
be offered and sold from time to time by such lenders in the manner set
forth above. The Company has agreed to indemnify the Selling Stockholders
against certain liabilities, including liabilities under the Securities
Act.
The Company will not receive any of the proceeds from the sale of the
Securities.
The Company has agreed to pay all costs of the registration of the
Securities. Such costs, fees and disbursements are estimated to be
approximately $10,000.
The Common Stock to be registered hereunder is listed for trading on
the Nasdaq National Market under the symbol "PETC."
_________________________________
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THE ATTORNEY GENERAL OF THE STATE OF NEW YORK HAS NOT PASSED ON OR ENDORSED
THE MERITS OF THIS OFFERING. ANY REPRESENTATION TO THE
CONTRARY IS UNLAWFUL.
_______________________________
The date of this Prospectus is May 8, 1998.
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AVAILABLE INFORMATION
The Company is subject to the informational requirements of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and in
accordance therewith files reports, proxy statements and other information
with the Securities and Exchange Commission (the "Commission"). These
materials can be inspected and copied at the public reference facilities
maintained by the Commission at Room 1024, Judiciary Plaza, 450 Fifth
Street, N.W., Washington, D.C. 20549, and at the Commission's regional
offices located at 500 West Madison Street, Suite 1400, Chicago, Illinois
60661 and 7 World Trade Center, 13th Floor, New York, New York 10048.
Copies of such material can be obtained at prescribed rates from the public
reference section of the Commission at 450 Fifth Street, N.W., Washington,
D.C. 20549. Electronic reports, proxy statements and other information
filed through the Commission's Electronic Data Gathering, Analysis and
Retrieval system are publicly available through the Commission's Web site
(http://www.sec.gov). In addition, the Common Stock is listed on the
Nasdaq National Market and similar information concerning the Company can
be inspected and copied at the offices of the National Association of
Securities Dealers, Inc., 1735 "K" Street, N.W., Washington, D.C. 20006.
The Company has filed with the Commission a Registration Statement on
Form S-3 (including all amendments thereto, the "Registration Statement"),
with respect to the Securities offered hereby. As permitted by the rules
and regulations of the Commission, this Prospectus does not contain all of
the information set forth in the Registration Statement and the exhibits
and schedules thereto. For further information about the Company and the
Securities offered hereby, reference is made to the Registration Statement
and the exhibits thereto, which may be examined without charge at the
public reference facilities maintained by the Commission at Room 1024,
Judiciary Plaza, 450 Fifth Street, N.W., Washington, D.C. 20549, and copies
of which may be obtained from the Commission upon payment of the prescribed
fees.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The following documents filed by the Company with the Commission are
incorporated herein by reference and shall be deemed to be a part hereof:
(a) Annual Report on Form 10-K for the fiscal year ended January
31, 1998;
(b) The description of the Common Stock set forth in the
Registration Statement on Form 8-A dated February 28, 1994, as amended by
the Company's Form 8-A/A dated March 15, 1994.
All documents filed by the Company pursuant to Section 13(a), 13(c),
14 or 15(d) of the Exchange Act after the date of this Prospectus and prior
to the termination of the offering of the Securities shall be deemed to be
incorporated by reference in this Prospectus and to be a part hereof from
the date of filing of such documents. Any statement contained in a
document incorporated or deemed to be incorporated by reference herein
shall be deemed to be modified or superseded for purposes of this
Prospectus to the extent that a statement contained herein or in any
subsequently filed document which also is or is deemed to be incorporated
by reference herein modifies or supersedes such statement. Any such
statement so modified or superseded shall not be deemed, except as so
modified or superseded, to constitute a part of this Prospectus.
A copy of any or all of the documents incorporated herein by
reference (other than exhibits unless such exhibits are specifically
incorporated by reference in any such document) will be provided without
charge to any person, including a beneficial owner, to whom a copy of this
Prospectus is delivered, upon written or oral request. Requests for such
copies should be addressed to the Secretary of the Company, 9125 Rehco
Road, San Diego, California 92121 (telephone number: (619) 453-7845).
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THE COMPANY
Certain statements in this Prospectus that are not historical fact
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may
cause the actual results of the Company to be materially different from
historical results or from any results expressed or implied by such
forward-looking statements. These factors are discussed under the caption
"Certain Cautionary Statements" in the Company's Annual Report on Form 10-K
for the fiscal year ended January 31, 1998.
The Company is a leading specialty retailer of premium pet food and
supplies. As of January 31, 1998, the Company operated 457 stores,
including 392 superstores, in 33 states and the District of Columbia. The
Company's strategy is to be the leading category-dominant national chain of
community pet food and supply superstores by offering its customers a
complete assortment of pet-related products at competitive prices, with
superior levels of customer service at convenient locations. The Company
believes that this strategy provides it with a competitive advantage by
combining the broad merchandise selection and everyday low prices of a pet
supply warehouse store with the convenience and service of a neighborhood
pet supply store.
The Company currently utilizes both superstore and traditional store
formats. The Company's expansion strategy is to open and acquire
superstores, including relocations, expansions or remodels of existing
traditional stores into superstores ("conversions"), and to close
underperforming stores. During the fiscal year ended January 31, 1998, the
Company opened or acquired 64 stores, including 10 conversions, merged with
companies with 77 stores, and closed 10 stores.
A significant part of the Company's expansion strategy is to
capitalize on the consolidation of the fragmented pet food and supply
industry. The Company believes that there are acquisition opportunities
which would allow the Company to attract new customers in existing markets,
enter new markets and leverage operating costs. Generally, the Company
seeks to acquire established and well-located stores or chains of stores
which are similar in size and format to the Company's existing superstores.
The Company's stores carry a complete assortment of leading brand
name premium food for dogs and cats, such as Iams, Nutro and Science Diet,
as well as selected mass brand foods, and a broad assortment of supplies
for dogs and cats, such as collars and leashes, grooming products, toys,
pet carriers, cat furniture, dog houses, vitamins, treats and veterinary
supplies. The Company's superstores also offer fish, reptiles, birds,
other small animals and related food and supplies, as well as grooming
services in many of its stores. The Company's pricing strategy is to offer
everyday low prices on all food items which are important in attracting and
retaining customers. The Company believes that offering competitive prices
on key food items increases customer traffic and generates sales of higher
margin pet supplies. The Company's large buying volume and sophisticated
distribution network allows it to compete effectively on price. The
Company modifies its pricing policies by regional or local markets and is
able to institute overnight price changes, as necessary, to meet market
competition. The Company's price guarantee program offers to match all
competitors' advertised prices.
The Company's prototype 15,000 square foot superstores carry a
complete merchandise assortment of more than 10,000 active stock keeping
units ("SKUs") of high quality pet-related products. The Company's
traditional stores, which average 3,500 square feet, also carry a wide
variety of premium pet food and supplies (approximately 5,000 active SKUs).
The Company's stores are located in high-traffic retail areas with ample
parking, often in community shopping centers anchored by a large
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supermarket. Most of the Company's store managers and sales associates are
better able to assist customers with their needs because they are pet
owners and enthusiasts. The Company's superstores are brightly illuminated
with colorful fixtures and graphics and feature prominent and attractive
signage which is designed to create a customer-friendly environment. The
Company believes that its superstore format allows it to create a more
customer-friendly environment than pet supply warehouse stores because of
its size, layout and design.
The Company's executive offices are located at 9125 Rehco Road, San
Diego, California 92121, and its telephone number is (619) 453-7845. The
Company is incorporated under the laws of the State of Delaware.
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SELLING STOCKHOLDERS
All of the shares of Common Stock to be registered hereunder
("Securities") and offered hereby will be sold for the account of the
Selling Stockholders. Information regarding the Selling Stockholders is
set forth in the following table.
<TABLE>
<S> <C> <C> <C>
Stock Owned Stock Offered for Stock Owned
Registered Owners Prior to Offering Stockholders Acct. After Offering
- ----------------- ----------------- ------------------ --------------
Lynn Bruns 294 294 0
Ausra Dapkus 711 711 0
Ron Dilger 294 294 0
Gordon Elliott 579 579 0
Madeline Galiej 601 601 0
Richard George 479 479 0
Raymond L. Guyer 48,060 48,060 0
Steven L. Jeske 5,610 5,610 0
Bonnie Johansen 309 309 0
Greg Johnson 117 117 0
Richard J. Joyce 274 274 0
John Kasprzyk 294 294 0
John Leach 725 725 0
Keith Maladra 711 711 0
Karen Morrison 5,874 5,874 0
Peter Piegore 294 294 0
J. Michael Riggan 26,888 26,888 0
Beth Rioux 294 294 0
Susan Ross 1,114 1,114 0
Kevin Tullock 711 711 0
</TABLE>
None of the Selling Stockholders has any position, office or other
material relationship with the Company or any of its affiliates (or had any
such position, office or material relationship within the past three
years), or will own greater than one percent of the Common Stock of the
Company after this offering, except that (i) Ausra Dapkus, Ron Dilger,
Bonnie Johansen, Richard J. Joyce, John Kasprzyk, Keith Maladra, Peter
Piegore, J. Michael Riggan, and Kevin Tullock are former employees of the
Company, (ii) Raymond L. Guyer, Steven L. Jeske, Lynn Bruns, Madeline Galiej,
Greg Johnson, Beth Rioux, and Susan Ross are non-officer and non-director
employees of the Company, and (iii) Karen Morrison is a former employee of the
Company who is currently serving as a consultant to the Company.
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PLAN OF DISTRIBUTION
The Selling Stockholders are entitled to distribute from time to time
up to 94,233 shares of the Securities, representing less than 1% of the
outstanding Common Stock of the Company on January 31, 1998. The Selling
Stockholders' plan of distribution is set forth on the cover page of this
Prospectus.
EXPERTS
The financial statements of Petco Animal Supplies, Inc. and
Subsidiaries as of February 1, 1997 and January 31, 1998, and for each of
the years in the three-year period ended January 31, 1998, have been
incorporated by reference herein and in the Registration Statement in
reliance upon the reports of KPMG Peat Marwick LLP and Coopers & Lybrand
LLP, independent certified public accountants, incorporated by reference
herein, and upon the authority of said firms as experts in accounting and
auditing.
The financial statements of PetCare Plus, Inc. as of January 25,
1997, and for the years ended January 27, 1996 and January 25, 1997 (which
are included in the restated pooled financial statements of Petco Animal
Supplies, Inc.) have been audited by Coopers & Lybrand LLP, independent
public accountants, as indicated in their report with respect thereto,
which is incorporated by reference herein in reliance upon the authority of
said firm as experts in giving said report.
LEGAL MATTERS
The validity of the Common Stock offered hereby will be passed upon
for the Company by Latham & Watkins, San Diego, California.
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No dealer, salesperson or other
individual has been authorized to give
any information or make any
representations other than those
contained in this Prospectus and, if
given or made, such information or
representations must not be relied 94,233 Shares
upon as having been authorized by the
Company. This Prospectus does not
constitute an offer by the Company to
sell, or a solicitation of an offer to
buy, the securities offered hereby in
any jurisdiction where, or to any Petco Animal
person to whom, it is unlawful to make Supplies, Inc.
an offer or solicitation. Neither the
delivery of this Prospectus nor any
sale made hereunder shall, under any
circumstances, create an implication
that there has been any change in the
affairs of the Company since the date
hereof or that the information
contained herein is correct or
complete as of any time subsequent to
the date hereof.
TABLE OF CONTENTS Common Stock
Page
----
Available Information 2
Incorporation of Certain
Documents by Reference 2
The Company 3 P R O S P E C T U S
Selling Stockholders 5
Plan of Distribution 5
Experts 6
Legal Matters 6 May 8, 1998
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