Petco Acquires Midwest Pet Supply Firm

Petco Animal Supplies Inc. said it completed the acquisition of Pet Food Warehouse Inc. for about $42 million in stock, a deal that will help it expand into the Midwest. Petco agreed to purchase the Minneapolis-based pet food and supply warehouse company on Oct. 4. Pet Food Warehouse investors will receive about 0.22 share of Petco for each of their shares. Petco will issue about 2 million shares to finance the purchase. San Diego-based Petco, one of the nation’s biggest pet food and supply retailers, will expand with Pet Food’s 32 stores in Minnesota, Wisconsin, Iowa and North and South Dakota. Petco operates 293 pet food and supply stores throughout the U.S. Its shares rose 75 cents to close at $21.50 on Nasdaq.