Central Garden & Pet Retains 20% Stake in Phillips-Led Pet Distribution JV
Central Garden & Pet will receive cash proceeds and retain a 20% stake in a joint venture with Phillips Pet Food & Supplies and Axar Capital, operating 11 U.S. distribution centers under the Phillips brand. Central’s distribution employees will transfer to the JV to accelerate growth and improve efficiency.
1. Joint Venture Structure
Under the agreement, Central Garden & Pet will hold a 20% ownership stake in the new distribution joint venture, while Phillips Pet Food & Supplies and its investors, led by Axar Capital, will hold the remaining 80%. Central will also receive undisclosed cash proceeds from the transaction.
2. Operational Integration and Staffing
The joint venture will operate under the Phillips brand and integrate 11 distribution centers across the United States. Current Central Pet Distribution employees are expected to transfer to the JV, preserving existing customer relationships and operational expertise.
3. Strategic Implications for Central
By combining complementary distribution platforms, the JV aims to accelerate growth, drive operational efficiency, and expand service capabilities for retail and independent partners. This structure allows Central to sharpen its focus on branded product growth and advance its Central to Home strategy while supporting long-term value creation.