Apollo In Talks To Buy Retailer PetSmart: Bloomberg

(RTTNews) - Apollo Global Management LLC (APO) is nearing a deal to buy retailer PetSmart Inc. (PETM), Bloomberg reported citing people with knowledge of the matter.

New York-based Apollo is said to in late-stage discussions to buy PetSmart for about $8 billion. This follows an auction process underway for the past few weeks.

Purchase of the company with a market value of $7.72 billion would be the largest leveraged deal for a U.S. company this year, the report added.

Last month, PetSmart said its third quarter profit remained essentially flat with last year, as higher costs and expenses offset a 2.6 percent rise in sales. The company has been facing pressure to sell itself.

PetSmart said in August that it would explore strategic alternatives, including a possible sale, bowing to pressure from activist investor Jana Partners LLC and other shareholders that the company sells itself.

In July, hedge fund Jana Partners revealed a 9.9 percent stake in PetSmart, and urged the firm to seek a sale.

PETM closed down 0.8 percent on Friday at $77.67. APO rose 0.3 percent to $22.81.