PetSmart Announces Asset Sale of State Line Tack to PetsUnited

PetSmart, Inc. (NASDAQ: PETM), today announced the sale of its State Line Tack equine assets to PetsUnited, the privately-held holding company for a web-based multi-marketer of pet and equine products, including dog.com, fish.com and horse.com. The sale, which closed today, includes the State Line Tack brand, inventory, customer lists and certain assets. Terms of the deal were not disclosed. The company announced its plans to exit the equine business in February. PetsUnited said it will move the State Line Tack online and catalog business from Brockport, NY, to its Hazelton, Penn. facility in the next 60 days. However, online and catalog orders and shipping will continue as usual during the transition period. PetSmart now will pursue opportunities to sell its 396,000-square-foot Brockport facility, which includes a warehouse, call center and retail store located on approximately 32 acres of land. Call center and fulfillment operations for the company’s online pet business (petsmart.com) will move to an outside e-commerce provider by Sept. 1, and the store will close August 25. The approximately 240 associates who work at the Brockport distribution center and call center will be laid off in stages over the next six months as the company phases out operations. The Brockport facility is expected to be fully vacated by the end of October. Lehman Brothers Inc. acted as exclusive financial advisor to PetSmart with respect to the sale. About PetSmart PetSmart, Inc. is the largest specialty pet retailer of services and solutions for the lifetime needs of pets. The company operates more than 908 pet stores in the United States and Canada, a growing number of in-store PetsHotel cat and dog boarding facilities, and is a leading online provider of pet supplies and pet care information (www.petsmart.com). PetSmart provides a broad range of competitively priced pet food and pet products; and offers complete pet training, pet grooming, pet boarding, doggie day camp and pet adoption services. Since 1994, PetSmart Charities, Inc., an independent 501(c)(3) non-profit animal welfare organization, has donated more than $52 million to animal welfare programs and, through its in-store pet adoption programs, has saved the lives of more than 2.9 million pets.