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Exhibit 99.1
PRESS RELEASE
PETCO Reports Completion of Merger
SAN DIEGO--(BUSINESS WIRE)--Oct. 2, 2000--PETCO Animal Supplies, Inc.
(NASDAQ:PETC) today announced that it has completed the previously announced
merger of the company with BD Recapitalization Corp. The merger was completed
after stockholders approved a plan of merger. In the merger, each issued and
outstanding share of PETCO common stock was cancelled and converted
automatically into the right to receive $22.00 in cash, without interest or any
other payment thereon, with the following exceptions: certain shares were
retained by members of PETCO's management; treasury shares and shares owned by
BD Recapitalization Corp. or by any of PETCO's subsidiaries were cancelled; and
shares held by dissenting stockholders were subject to appraisal in accordance
with Delaware law. The transaction was led by Leonard Green & Partners, L.P.,
Texas Pacific Group and members of the company's management. "We are pleased to
have completed this transaction for the Company and its stockholders" said Brian
K. Devine, Chairman, President and Chief Executive Officer. "PETCO customers and
associates can look forward to PETCO's continued expansion as a leader in the
pet food and supplies industry."
John Danhakl, partner at Leonard Green & Partners, L.P. and Jonathan Coslett of
Texas Pacific Group stated, "We eagerly anticipate our partnership with PETCO
and its employees. This merger will allow PETCO to continue to execute its
proven strategies." PETCO is a leading specialty retailer of premium pet food
and supplies. PETCO operated 517 stores in 40 states and the District of
Columbia as of September 30, 2000. Leonard Green & Partners, L.P., is a private
Los Angeles-based merchant banking firm specializing in organizing, structuring
and sponsoring management buy-outs, going private transactions and
recapitalizations of established public and private companies. Leonard Green &
Partners, L.P. has significant investments in Liberty Group Publishing, Inc., a
chain of 284 community newspapers; RiteAid, a national chain of 3,800 drug
stores; Twinlabs Corporation, a leading manufacturer of vitamins and nutritional
supplements; Leslie's Poolmart, Inc., the nation's leading retailer of pool
supplies; Gart Sports Company, the nation's second largest sporting goods
retailer; and White Cap Industries, Inc., a leading business-to-business
retailer of specialty tools and materials to professional contractors in the
Western United States. Leonard Green & Partners, L.P. is the largest private
equity fund in Southern California, managing in excess of $1.7 billion of
private equity capital.
Texas Pacific Group, founded in 1993 and based in Fort Worth, TX, San Francisco,
CA, and London, is a private investment partnership with capital of
approximately $7 billion. TPG's principals include David Bonderman, James G.
Coulter, and William S. Price. The partnership has made significant investments
in a broad range of industries, including consumer products (Beringer Wine
Estates, Del Monte), luxury goods (Bally, Ducati, J. Crew), technology (ON
Semiconductor, Gemplus), telecommunications (First World, Advanced TelCom
Group), airlines (Continental, America West), and healthcare services (Oxnard
Health Plans). Certain statements in this news release that are not historical
fact constitute "forward-looking statements" within the meaning of Section 21E
of the Securities and Exchange Act of 1934 and 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
PETCO to be materially different from historical results or from any results
expressed or implied by such forward-looking statements.
These factors, such as integration of operations as a result of acquisitions,
competition, reliance on vendors, product lines and exclusive distribution
arrangements, dependence on senior management and performance of new
superstores, are discussed under the caption "Certain Cautionary Statements" in
PETCO's Annual Report on Form 10-K for the year ended January 29, 2000.
Contact:
PETCO Animal Supplies, Inc.
James M. Myers, Senior Vice President and Chief
Financial Officer, 858/677-3005
