Largest e-commerce deal ever: Chewy.com bought for $3.4 billion

Posted by on April 18, 2017 9:41 pm
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Categories: Follow the Money

PetSmart has agreed to make the biggest e-commerce acquisition in history, putting a deal in place to snatch up fast-growing pet food and product site Chewy.com for $3.35 billion, according to multiple sources familiar with the deal.

The deal is a huge one by any standard — bigger than Walmart’s $3.3 billion deal for Jet.com last year — and especially for a retail company like PetSmart, which was itself valued at only $8.7 billion when private equity investors took it over in 2015.

But Chewy.com has been one of the fastest-growing e-commerce sites on the planet, registering nearly $900 million in revenue last year, in what was only its fifth year in operation. The company had been a potential IPO candidate for this year or next, but was taken out by its brick-and-mortar competitor before that. It was not profitable last year.

Chewy was founded in 2011 by Ryan Cohen and Michael Day, and built a cult following for its excellent customer service, large selection and fast shipping. It had quietly raised at least $236 million in venture capital from investors including Volition Capital, T. Rowe Price and BlackRock.

 

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PetSmart is acquiring Chewy.com for $3.35 billion in the largest e-commerce acquisition ever
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One response to Largest e-commerce deal ever: Chewy.com bought for $3.4 billion

  1. Tony Perkins April 19th, 2017 at 2:32 am

    Wow people sure like their pets. The company has been pretty under the radar by being headquartered in Fort Lauderdale, Fla., and not in a big e-commerce market like New York or Los Angeles. Two other unglamorous e-commerce companies to watch:

    Stitch Fix—An IPO appears to be a “when,” not “if,” for Stitch Fix, the online retailer and personal try-it-on- at-home styling service for middle American. San Francisco-based company does well north of $500 million in annual sales, have been living off a $30 million venture round in 2014, appears break-even cash-wise or better. A multi-billion dollar acquisition offer as a potential alternative like Amazon is obviously not out of the question..

    Casper—The New York City-based mattress startup claims to have done close to $200 million in revenues in 2016, up from $100 million in 2015. Still needs some more quarters under its belt before we could see an IPO.

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