Colgate-Palmolive Invests $700 Million in 3 Pet Food Manufacturing Plants to Expand Hill’s Pet Nutrition Growth | New
Colgate-Palmolive Co. plans to buy three U.S. dry pet food manufacturing plants from Red Collar Pet Foods for $700 million to support the global growth of its Hill’s Pet Nutrition business.
The plants, which are located in Orangeburg, SC, Clinton, Okla., and Washington Court House, Ohio, will be integrated into Hill’s global supply network to produce dry pet food for Hill’s Science Diet and Prescription brands. Diet, company officials said. The purchase agreement includes the transfer of approximately 350 employees involved in the dry pet food operations.
Hill’s is building a new canned pet food manufacturing facility in Tonganoxie, Kansas, with production slated for next year, and completed a pet food plant acquisition in April. canned pet food in Italy, also to meet the demand for its scientific pet food. diets, officials said.
“Our Hill’s business is growing well and we continue to invest in expanding production capacity, improving our capabilities with initiatives such as our new Small Paws Innovation Center and better engaging pet parents, veterinarians and Hill’s retail partners,” said Noel Wallace, chairman, president and CEO of Colgate-Palmolive Co., New York. “This investment will help further strengthen Hill’s business today and for the long term.
The acquisition is subject to regulatory approval and other closing conditions. The acquisition is not included in the company’s current guidance and is not expected to have a material impact on diluted earnings per share in 2022, officials said.
“Hill’s is committed to enriching and extending the special relationship between people and their pets, and this additional production capacity will help us reach more pets with our science-based foods and allow us to raise the bar. of service we provide to the specialty retailers and veterinary professionals who carry our products,” said John Hazlin, President of Hill’s Pet Nutrition. “We look forward to welcoming the members of the Red Collar team to the Hill’s family.”
Red Collar, an Arbor Investments portfolio company, will manage the private label dry pet food business for a period of transition and will continue to own and operate its pet treat business and facilities. company.
Wachtell, Lipton, Rosen & Katz acted as legal advisor to Colgate-Palmolive and Perella Weinberg Partners LP acted as financial advisor to Colgate-Palmolive in connection with the transaction. Kirkland & Ellis LLP acted as legal advisor to Red Collar Pet Foods, and Centerview Partners LLC acted as financial advisor to Red Collar Pet Foods in connection with the transaction.