CVC, the private equity giant that owns Formula One, has agreed a deal with Canada Pension Plan Investment Board (CPPIB) to buy US pet supplies retailer Petco for $4.6bn (£3.04bn).

CVC will jointly aquire the company, which is the second largest petcare supplier in the US, from a group of investors led by TPG and Leonard Green & Partners.

An earlier merger bid from US market leader PetSmart stalled last month thanks to competition and antitrust concerns.

James Myers, Petco’s chief executive, said: "As the North American pet industry continues to grow, Petco is well positioned with a strong brand, differentiated engagement model, and omnichannel strategy.

"Both CVC and CPPIB have outstanding track records and deep retail experience and resources that will help support our growth initiatives."

The deal is expected to close early next year.

“Petco is clearly a leader in the industry, with strong further growth potential and a talented leadership team,” said Chris Stadler, CVC managing partner. “The pet category is a growing and dynamic space within which we believe Petco is ideally positioned to enhance its leadership position.”