Phillips Pet Food and Central Pet agree on joint venture

Phillips Pet Food & Supplies, a leading distributor in the pet food and supplies industry, and Central Garden & Pet, a market leader in the pet and garden sectors, have announced an agreement to form a strategic joint venture.

By bringing together two highly complementary platforms, the companies aim to create a stronger, more agile nationwide distribution network designed to accelerate growth opportunities, drive greater operational efficiency, and deliver enhanced service and capabilities to the companies’ customers, employees, and vendor partners, according to a press release.

Under the terms of the agreement, Central will receive cash proceeds and retain a 20 per cent ownership stake in the newly formed entity. Phillips and its existing investors, led by Axar Capital Management LP and Blaine Phillips, will hold a controlling interest. Current Central Pet distribution employees are expected to transition to the new joint venture, which will operate as an independent company under the Phillips brand.

By combining Phillips’ strength in pet food with Central’s leadership in pet supplies, the joint venture is expected to create a more agile, efficient, and service-oriented network, with expanded reach and improved access for retail and independent partners across the United States.

A press release by Gordon Brothers stated, the investment company had provided Phillips with $175 million in strategic financing and will serve as the integration agent for the joint venture, which will be the largest pet distribution company in the country.