Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : PETM - Petsmart -- Ignore unavailable to you. Want to Upgrade?

To: Ms. Baby Boomer who wrote (1500)	1/4/2001 10:53:03 PM
From: Ms. Baby Boomer	Read Replies (1) \| Respond to of 1508

PETSMART INC (PETM) Form 8-K January 04, 2001 ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS. On December 20, 2000, PETsMART, Inc. (the "Company") acquired a controlling interest in PETsMART.com, Inc., a Delaware corporation ("PETsMART.com") (the "Transaction"). PETsMART.com is a leading e-commerce pet food and supply business which began operations in the second quarter of 1999 and in which the Company held approximately a 46 percent equity ownership prior to closing of the Transaction. Under the terms of the Transaction the Company contributed $20 million in cash and a promissory note, as well as its pet catalog business with net assets valued at approximately $10 million, to form an integrated direct marketing subsidiary. The cash contributed pursuant to the transaction came from the Company's general business funds. As a result of the Transaction and the repurchase of shares of capital stock from certain employees and other shareholders of PETsMART.com for approximately $2.8 million in aggregate consideration, the Company will hold more than an 80 percent equity ownership interest in PETsMART.com, and assume control and consolidation rights. The amount of consideration given in the Transaction was negotiated on an arm's length basis. Philip L. Francis, the President, Chief Executive Officer and a Director of the Company, Robert F. Moran, the Company's President of North American Stores, and Neil T. Watanabe, the Company's Executive Vice President and Chief Financial Officer also served as directors of PETsMART.com prior to the closing of the Transaction. The Company is entitled to designate a majority of the directors of PETsMART.com following the closing of the Transaction. biz.yahoo.com