Who Actually Owns Pet Supplies Ecommerce Giant Chewy?

ByCharles Scott Last Update on

As Chewy has rapidly grown into a pet ecommerce leader, it‘s natural to wonder – who‘s actually behind this company? Does Chewy have autonomy, or is there a bigger player owning the strings?

I‘ve researched the history and current state of Chewy‘s ownership and want to provide some clarity. Keep reading to learn more.

A Quick History of Chewy‘s Ownership Timeline

Let‘s start from the beginning:

  • 2011: Chewy founded by Ryan Cohen and Michael Day
  • 2013: Chewy raises venture capital funding, still independently owned
  • 2017: Pet supplies giant PetSmart acquires Chewy for $3.35 B in all-cash deal
  • 2019: Chewy goes public via IPO while still a subsidiary of PetSmart
  • 2021: PetSmart parent BC Partners scraps plans to sell Chewy stake
  • Present: BC Partners retains majority control

So Chewy operated independently for 6 years until the rich PetSmart acquisition offer proved too good to pass up.

Even after the IPO gave public investors a slice of Chewy, private equity firm BC Partners ultimately maintained ownership control via PetSmart.

Who Is BC Partners & Why Did They Want Chewy?

BC Partners is a mammoth private equity group based in Europe, founded in 1986. With over $40 billion assets under management, BC Partners has the resources to make buys like Chewy and hold them long-term.

Analysts believe PetSmart, itself acquired by BC Partners in 2015, wanted Chewy to strengthen its online business against specialist e-commerce players like Chewy stealing market share.

So BC Partners saw Chewy as critical to securing PetSmart‘s position and fending off competitors like Amazon and Walmart who‘ve expanded into pet products.

The Power Behind the Chewy Throne

Today, BC Partners owns Chewy through its majority stake (over 75%) in parent company PetSmart. SEC filings confirm BC Partners has over 300 million Chewy shares.

Chewy does trade publicly, but ultimately BC Partners has the controlling say in key business decisions.

Interestingly, Chewy has continued its blistering growth pace despite being under private equity ownership. Revenues have surged from $2.1 billion in 2017 to over $8 billion in 2021. Profits are steadily rising as well.

Public investors unable to pressure BC Partners into selling have benefited from this continued success. But BC Partners shows no signs of giving up control of this prized ecommerce asset soon.

What This Means for Chewy: The Best of Both Worlds?

Chewy finds itself in a unique position – publicly traded yet majority controlled by long-term private capital.

On one hand, Chewy has to focus on quarterly public company metrics like earnings. But BC Partners seems focused on investing to further Chewy‘s market lead over 5-10 years rather than short term shareholder demands.

Chewy also likely benefits from synergies with PetSmart despite formal separation between the companies. This could range from shared vendor partnerships to PetSmart serving as brick-and-mortar distribution points for Chewy services.

But some questions remain on if BC Partners has future plans to cash out by selling Chewy, or if an alliance with Walmart or Amazon ever materializes. For now though, BC Partners remains firmly in the driver‘s seat.

Conclusion: A Private Equity Backing Uncommon for Ecommerce

Unlike most pure-play retail ecommerce platforms today, Chewy has a private equity owner focused on long-term growth even as a public company.

The backing of BC Partners has likely given management confidence to invest aggressively – but it does mean the fate of Chewy lies more with a private European firm than public shareholders.

This dynamic has succeeded spectacularly so far. But how long can the CHEWY+BC Partners relationship lead the pet care industry before demands for an ownership change emerge?

Charles Scott is a dynamic professional whose academic and career achievements demonstrate a strong commitment to excellence in the retail and consumer service industry. Graduating with an MBA from New York University in 2013, Charles has built a diverse and impressive career portfolio. He has held significant roles as a manager, advisor, and marketer, showcasing his multifaceted skills and deep understanding of the industry.

Beyond his direct professional engagements, Charles has made a notable mark as the head writer and founder of ExpertBeacon.com. This platform stands as a testament to his dedication to consumer empowerment and education. ExpertBeacon.com is a resource designed to assist consumers in addressing their persistent questions about products, services, and companies. Under Charles's leadership, the site provides in-depth, well-researched, and accurate information, all structured in easy-to-follow guides and articles. His work here not only highlights his expertise in the field but also his commitment to providing valuable, actionable information to the public.

Charles's approach is centered on a keen understanding of consumer needs and market dynamics, making him a respected voice in the industry. His contributions through ExpertBeacon.com and his professional roles reflect a blend of strategic thinking, practical knowledge, and a genuine desire to enhance consumer experiences in the retail and consumer service sectors.

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