Chewy, Inc. (NYSE: CHWY) has announced a $500 million share repurchase from BC Partners, the company's largest shareholder. This repurchase involves 17,550,000 shares of its class A common stock at a price per share of $28.49, which represents a 5.0% discount to the previous day's closing price.
Prior to the repurchase, Chewy had approximately 436 million shares of class A common stock and class B common stock outstanding. Following the repurchase, the company will have approximately 418 million shares outstanding.
This repurchase comes in addition to the recently announced $500 million share repurchase program, highlighting the company's confidence in its business and growth strategy. The company's increasing profitability and free cash flow generation enable it to optimize its capital allocation strategy through this transaction.
The repurchased shares will be cancelled and retired upon completion of the repurchase, which is expected to close by June 27, 2024. The transaction was approved by a special committee of Chewy’s board of directors, consisting solely of independent and disinterested directors not affiliated with BC Partners.
Chewy's mission is to be the most trusted and convenient destination for pet parents and partners everywhere, offering a broad selection of high-quality products and services at competitive prices. The company partners with approximately 3,500 trusted brands in the pet industry and offers approximately 115,000 products and service offerings to its customers.
This share repurchase reflects Chewy's confidence in its business, profitability, and growth prospects, as it continues to focus on delivering value to its shareholders. As a result of these announcements, the company's shares have moved 1.8% on the market, and are now trading at a price of $29.65. For the full picture, make sure to review Chewy's 8-K report.
