Chewy Plans $500M Share Repurchase from BC Partners

$Chewy(CHWY.US)$ will repurchase $500 million worth of Class A common stock from Buddy Chester Sub LLC, associated with BC Partners. This buyback is priced at $28.49 per share, retiring 17,550,000 shares.

Key points:
Repurchase Price: 5% discount to the June 26, 2024 closing price.
Chewy's Confidence: Reflects strong profitability and cash flow generation.
Capital Use: Seen as accretive, reducing the ownership stake of its largest shareholder.
Recent Announcement: Follows a $500 million share repurchase program.
Financial Position: Generated $52.6 million in free cash flow in Q1 2024, ending with over $1.1 billion in cash and no debt.

This move underscores Chewy's commitment to returning cash to shareholders and reinforcing its market position in the pet care industry.