Coles is in talks to acquire Greencross Pet Wellness Company, the owner of Petbarn, City Farmers and Greencross Vets, in a deal that private equity owner TPG is said to be seeking around 4 billion dollars for.
The business up for sale spans 267 retail stores, 160 veterinary clinics and 24 animal hospitals across Australia. Coles first approached TPG about a possible deal nearly a year ago, and the two sides remain in discussions, though the supermarket chain has cautioned there is no certainty a transaction will actually proceed.
A first step outside groceries
A deal of this size would mark Coles' first major expansion beyond its core grocery and liquor operations. The company has described itself as one of Australia's leading retailers with a strong balance sheet, pursuing opportunities that complement its existing business. Pet care has become an increasingly attractive category since the pandemic, when pet ownership and spending on pets both climbed sharply, and rivals Woolworths and Bunnings have already been pushing further into the space.
A mixed pet care track record
The interest in Petbarn comes only months after Coles shut down its own pet business, Swaggle, in March. It would also be the first major deal struck under chief executive Leah Weckert, who has now been in the role for three years. Coles shares fell 4.19 percent on the day the talks became public, a move the company linked partly to a separate decision from the competition regulator landing around the same time.
