NEW YORK (TheStreet) -- Shares of PetSmart (PETM) surged today, closing higher by 4.25% to $80.97 on heavy trading volume, after the company agreed to be acquired by London-based private equity firm BC Partners for $8.7 billion.
BC Partners bought the pet products chain for $83 per share, which is 6.8% higher than its closing price on Friday, and values the retailer at about $8.7 billion.
The deal was unanimously approved by PetSmart's board and is expected to close in the first half of 2015.
The move comes after activist investor Jana Partners started to push for a sale of the pet products company in July, after disclosing a 9.9% stake. Jana paid less than $55 a share for its percent stake.
Separately, TheStreet Ratings team rates PETSMART INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PETSMART INC (PETM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, growth in earnings per share and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."