Petz’s R$2.7 Billion Initial Public Offering

Cleary Gottlieb represented the international placement agents in the primary and secondary equity offering of Pet Center Comércio e Participações S.A. (“Petz”). Pinheiro Guimarães acted as counsel to the selling shareholder in the offering. Milbank and Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados advised Pet Center Comércio e Participações S.A. Pinheiro Guimarães advised Sergio Zimerman Cescon, Barrieu, Flesch & Barreto advised Warburg Pincus. Pinheiro Neto advised the local placement agents.

The offering raised approximately R$2,693,877,546.25 in gross proceeds and consisted of primary and secondary offerings of an aggregate of 195,918,367 common shares. The shares offered were priced at R$13.75 per share on September 9, 2020, and the offering closed on September 14, 2020. The overallotment option was exercised on September 22, 2020, and the option closing was on September 24, 2020.

The offering was registered before the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários – CVM). The shares were offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act.

Itau BBA USA Securities, Inc., Santander Investment Securities, Inc., BofA Securities, Inc, J.P. Morgan Securities LLC  and BTG Pactual US Capital, LLC acted as international placement agents.

Petz is the most complete pet solution platform in Brazil, in terms of product assortment, sales channels, geographic coverage and offer of products and services, and has more stores than any other pet specialized retail chain in Brazil. Petz operates through 110 stores (present in 13 states and the Federal District of Brazil), and digital channels, under a strong omnichannel strategy. Petz is arguably the largest chain of veterinary and animal grooming centers in Brazil and one of the largest program for adoption of cats and dogs in the country. Petz Solution platform offers a wide range of pet products, including products under its private label “Petz,” animal healthcare and grooming services, adoption centers for cats and dogs, in addition to events, recreational spaces, social projects and other experiences focused on pets and their families. Petz is a portfolio company of the U.S. private equity firm Warburg Pincus, one of the selling shareholders.

The Cleary corporate team included São Paulo based partner Juan Giráldez (Picture), counsel Jonathan Mendes de Oliveira, and international lawyer Felipe Neves.  New York based associates Eric Gruebel and Hannah Littman advised on tax matters.

Pinheiro Guimarães team was led by partners Sérgio Ramos Yoshino and Cristina Tomiyama and associates Rodrigo Terassovich and Jonas Assumpção.

Milbank advised Pet Center Comércio e Participações S.A. with Andrew R. Walker, Corey Spector, Fabiana Y. Sakai and Amanda Trés.

Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados advised Pet Center Comércio e Participações S.A. and WP XI A Fundo de Investimento em Participações Multiestratégia with Jean Marcel Arakawa, Isabela Buranelli Francovig and Vivian Hatushikano.

Cescon, Barrieu, Flesch & Barreto advised Warburg Pincus with María Cristina Cescon, Luciana de Castro Mares Torres and Eduardo Figueira de Brito.

Pinheiro Neto advised Banco Itaú BBA S.A., Banco Santander (Brasil) S.A., Bank of America Merrill Lynch Banco Múltiplo S.A., Banco J.P. Morgan S.A. and Banco BTG Pactual S.A. with Guilherme Sampaio Monteiro, Camila Carvalho Gomes.  Frederico A. Menescal C. Rocha. and Nicole Rocha.

Involved fees earner: Maria Cristina Cescon – Cescon, Barrieu, Flesch & Barreto; Luciana de Castro Mares Torres – Cescon, Barrieu, Flesch & Barreto; Eduardo Figueira de Brito – Cescon, Barrieu, Flesch & Barreto; Felipe Costa Neves – Cleary Gottlieb Steen & Hamilton; Juan Giráldez – Cleary Gottlieb Steen & Hamilton; Jonathan Mendes de Oliveira – Cleary Gottlieb Steen & Hamilton; Jean Marcel Arakawa – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Isabela Buranelli Francovig – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Vivian Hatushikano – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Fabiana Sakai – Milbank; Corey Spector – Milbank; Amanda Trés – Milbank; Andrew Walker – Milbank; Jonas Assumpção – Pinheiro Guimarães; Sergio Ramos Yoshino – Pinheiro Guimarães; Rodrigo Terassovich – Pinheiro Guimarães; Cristina Tomiyama – Pinheiro Guimarães; Camila Carvalho Gomes – Pinheiro Neto; Frederico Menescal – Pinheiro Neto; Guilherme Sampaio Monteiro – Pinheiro Neto;

Law Firms: Cescon, Barrieu, Flesch & Barreto; Cleary Gottlieb Steen & Hamilton; Mattos Filho Veiga Filho Marrey Jr & Quiroga; Milbank; Pinheiro Guimarães; Pinheiro Neto;

Clients: Banco Itau BBA; Banco Santander Brazil; Bank of America Merrill Lynch; Bank of America Securities; BTG Pactual; BTG Pactual US Capital, LLC; Itaú BBA USA Securities; J.P. Morgan Securities LLC; JP Morgan; Pet Center Comércio e Participações; Santander Investment Securities Inc.; Sergio Zimerman; Warburg Pincus;

Author: Ambrogio Visconti.