Has PetSmart Acquired Chewy? Debunking the Internet’s Common Myths
Has PetSmart Acquired Chewy? Debunking the Internet’s Common Myths
There is a lot of confusion online about whether or not PetSmart has acquired Chewy. Let's clear the air and shed some light on this issue.
Background Information
Firstly, it's important to understand the industry context. PetSmart is a well-known pet supplies retailer, while Chewy specializes in online pet supply sales. While they are both in the pet care market, they cater to slightly different niches.
The Acquisition in 2017
Back in 2017, PetSmart did acquire Chewy. This acquisition made sense at the time as it was a strategic move to broaden PetSmart's market reach. However, the joint venture was short-lived.
The Split in 2020
By 2020, PetSmart and Chewy had split again and are now considered two independent companies. This means that while they were once owned jointly, they are now operated separately. Both companies operate under their own management and are serving their respective customer bases independently.
Ownership and Ownership Structure
Additionally, there's another interesting detail regarding ownership. BC Partners, a private equity firm, still owns both PetSmart and Chewy. Even though they share the same owner, the acquisition and subsequent split mean that customers of each company cannot use gift cards from one to purchase items from the other. This is due to their independent operating models and cash flow structures.
Fact and Fiction: Separating Myths from Facts
Myth: PetSmart owns Chewy.While PetSmart did own Chewy for a brief period, this ownership ceased in 2020 with the split. Chewy operates independently with its own set of products, strategies, and customer base.
Myth: You can use a PetSmart gift card at Chewy.Due to the independent nature of the two companies, you cannot use a PetSmart gift card at Chewy, and vice versa.
Myth: PetSmart and Chewy are part of the same company today.The split in 2020 has ensured that PetSmart and Chewy are now separate entities, each competing in their respective markets and operating independently from one another.
Conclusion
In conclusion, while PetSmart and Chewy were once a single entity, they are now two separate and independent companies. The joint ownership by BC Partners does not negate their independent operations, and their customer base, product offerings, and marketing strategies remain distinct.