There are a few interested parties that are considering placing bids to buy out PetSmart Inc. (NASDAQ: PETM).  Clayton, Dubilier & Rice; Kohlberg Kravis Roberts & Co. L.P. (NYSE: KKR); BC Partners and Apollo Global Management LLC (NYSE: APO) are all considering the possibility of taking ownership of PetSmart Inc. (NASDAQ: PETM).  This developing news could result in a multibillion dollar private equity buyout, worth 7.5 billion dollars.

The PetSmart Inc. (NASDAQ: PETM) stock has a $7.31 billion market cap, according to Tuesday’s closing price of 73.61 per share.

PetSmart Inc. (NASDAQ: PETM) reported results for the 2014 third quarter as $1.02 in earnings per share as well as $1.74 billion in total revenue.  These numbers has helped boost the sales price, per share, which makes this company an even better investment.

At the end of September 2014, the largest stakeholders of PetSmart Inc. (NASDAQ: PETM) were Jana Partners who controlled 9.7 million shares.  Longview Asset Management controlled more than 8.8 million shares and The Vanguard Group held 7.5 million shares in the company.

In the last few months, PetSmart Inc. (NASDAQ: PETM) shares have risen to all-time highs.

PetSmart Inc. (NASDAQ: PETM) was founded in 1986 and opened their doors in 1987, under the name of PetFood Warehouse.  The name was changed in 1989 and went public in 1993.

This retail chain that currently operated in the United States, Puerto Rico and Canada sells all type of supplies for pets.  In addition, they offer a grooming and daycare area as well as a pet adoption section.  As advertised, if the groomers at PetSmart are unable to have your pooch looking great, the service will be free.

PetSmart Inc. (NASDAQ: PETM) offers a variety of food for your dog, including Grreat Choice, Simply Nourish, Top Paw and Authority.

Cats will never go hungry thanks to the wide variety of both dry and can foods offered by PetSmart Inc. (NASDAQ: PETM).  In addition to food, you will be able to find litter, beds and a variety of toys to keep your pet entertained for hours.

All your fish needs can be taken care of, at your local PetSmart store, as they sell stands, tanks, decorations, filters, gravel, heaters and of course fish.  Birds and other small animals are never left out as perches, cages, bowls, food and other products are available for your pets of all shapes and sizes.

In addition to the above mentioned products, PetSmart Inc. (NASDAQ: PETM) currently operates PetsHotel throughout the United States and Canada.

With all that PetSmart Inc. (NASDAQ: PETM) has going for them, it should come as no surprise that interested parties are bidding on this worthwhile company.

PetSmart Inc. (NASDAQ: PETM) share prices are high and opened the market today at 76.67 and at 11:25 a.m. Eastern Standard Daylight Time, it is holding at 76.47.  Their 52 week range is between 55 and 77.20 with a market cap of 7.59 billion.  The company is currently 97% institutionally owned.

Jana Partners has much experience under its belt with similar partnerships with retailers. It has taken Safeway Inc., a grocery retailer chain, and Outerwall Inc., a movie rental service, under its wing.

The news of Jana Partner’s involvement with the retailer pushed PetSmart shares up 13% to $67.28 on Thursday. Before the news was released, PetSmart shares were sliding, having dropped 18% this past year due to less sales.

However, the years prior to that PetSmart experience growth and rise in stock prices. In 2011 prices of shares rose by 29% and in 2012 they rose 33%, while only rising 6.5% in 2013.

It seems that PetSmarts troubles come from underperforming sales and too much competition from rivals on the web. However, analysts say that the company’s issues problems are greater than just little traffic.

Innovation is key for any business to prosper in today’s market. PetSmart has failed to catch on, and is now at a disadvantage to online retailers such as Wag.com, Amazon.com, and Petco. Less than 1% of PetSmart’s sales come from e-commerce accounts, which shows just how behind and slow the company is compared to more efficient competition.

This year Petsmart increased marketing and promotional efforts to draw customers into its stores. However, it seems the struggle has not paid off. The company reported that its first quarter sales missed their expectations. By the end of the first quarter, the stock price was at $1.04, which was a jump from the $0.98 the previous year. However, its net sales increased by only 1.1% to $1.7 billion. If you don’t count recently opened or closed retail locations, net sales tumbled 0.6%.

After these first quarter stats were announced, PetSmart share prices dropped sharply.

PetSmart is now focusing on expanding into the online retail market. Chief executive officer David Lenhardt stated that he plans to focus on driving traffic to the stores and achieve top line sales growth, while increasing value for company shareholders by managing costs.