Consumer goods giant Colgate-Palmolive is set to purchase three dry pet food manufacturing plants in the US from Red Collar Pet Foods for $700 million (€686.5 million).
The acquisition is part of the group's plan to support the global growth of its Hill’s Pet Nutrition business, Colgate-Palmolive noted.
Pet Food
The plants are located in South Carolina, Oklahoma, and Ohio and will be integrated into Hill’s global supply network to produce dry pet food for Hill’s Science Diet and Prescription Diet brands.
The purchase agreement includes the transfer of the approximately 350 employees involved in the dry pet food operations.
Hill’s is currently building a new canned pet food manufacturing facility in Tonganoxie, Kansas, scheduled to begin production next year,
In April, the group completed the acquisition of a canned pet food plant in Italy to meet demand for its science-led pet nutrition diets.
Noel Wallace, chairman, president, and chief executive officer of Colgate-Palmolive said, “Our Hill’s business is growing well, and we continue to invest to expand production capacity, improve our capabilities with initiatives like our new Small Paws Innovation Centre, and better engage pet parents, veterinarians and Hill’s retail partners.
“This investment will help further strengthen the Hill’s business today and for the long term.”
John Hazlin, president of Hill’s Pet Nutrition, added, “Hill’s is committed to enriching and lengthening the special relationship between people and their pets, and this additional production capability will help us reach more pets with our science-led foods and enable us to raise the level of service we provide to the specialty retailers and veterinary professionals that offer our products. We look forward to welcoming members of the Red Collar team to the Hill’s family.”
Acquisition Details
The acquisition, subject to regulatory approval and other closing conditions, is not included in the group's current guidance, and is not expected to have a material impact on diluted earnings per share in 2022.
Red Collar, an Arbor Investments portfolio company, will manage the dry pet food private-label business for a transition period and will continue to own and operate its pet treats business and facilities.
Wachtell, Lipton, Rosen & Katz acted as legal advisor and Perella Weinberg Partners LP acted as financial advisor to Colgate-Palmolive on the transaction.
Kirkland & Ellis LLP served as legal advisor to Red Collar Pet Foods, and Centerview Partners LLC as financial advisor on the transaction.
© 2022 European Supermarket Magazine – your source for the latest A-Brands news. Article by Conor Farrelly. Click subscribe to sign up to ESM: European Supermarket Magazine.
