NEW YORK, July 29 (Reuters) - Investment firm Pondera

Holdings is exploring options for Whisker, including a sale of

its controlling stake that could value the maker of

self-cleaning cat litter boxes at close to $1 billion, according

to people familiar with the matter.

A deal would likely lead to the recapitalization of Whisker,

with new debt and equity refinancing its capital structure, said

the sources, who requested anonymity as the discussions are

confidential.

Whisker is working with investment banks Bank of America and

Houlihan Lokey to evaluate its options, the sources said,

cautioning that a deal is not guaranteed.

Pondera and Houlihan declined to comment. Bank of America

did not immediately respond to requests for comment.

Private equity firms have been attracted to pet-care

companies in recent years, as a surge in pet ownership during

the pandemic drove up demand for pet accessories.

Earlier this year, Blackstone agreed to take pet-care

app Rover private in a $2.3 billion all-cash transaction. Last

year, Apollo Global acquired a significant stake in

retailer PetSmart.

Auburn Hills, Michigan-based Whisker was launched by Brad

Baxter, an engineer by background who inherited two cats and

wanted to create an alternative to the traditional litter box.

Baxter launched the Litter-Robot, an automatic, self-cleaning

litter box, in his basement in 1999.

Litter-Robot currently has more than 1 million customers,

according to its website. Whisker also makes an automatic pet

feeder called Feeder-Robot and other cat accessories.

Chicago-based Pondera is a mid-market investment firm that

backs several companies in the consumer, retail and

animal-welfare industries. Its portfolio includes Avanti Equine

Veterinary Partners, confectionary brand CandyCo and pet care

firm Wag'n Tails.