PetSmart has been setting the stage to accelerate its digital offerings. Now it can.

The specialty pet supplies retailer announced on Wednesday, May 31, that it completed the acquisition of Chewy, a leading online retailer for merchandise for pets, ranging from cats and dogs to horses. PetSmart financed the transaction through the offering of $1.350 million of 5.875% senior first lien notes, $650 million of 8.875% senior notes, and proceeds of an approximately $1,000 million equity contribution by PetSmart’s existing investor group and cash on hand, according to the company.

PetSmart will benefit from Chewy’s e-commerce expertise as it continues to expand its online capabilities. Simultaneously, Chewy will focus on its current business strategy and have access to PetSmart’s infrastructure and…