Central Garden & Pet Spins Distribution Unit into 20% Stake Joint Venture with Phillips
Central Garden & Pet will spin its distribution business into a joint venture with Phillips Pet Food & Supplies and Axar Capital, receiving cash proceeds and retaining a 20% stake while Phillips and Axar hold 80%. The new Phillips-branded entity covers 11 U.S. distribution centers and transfers Central distribution employees.
1. Joint Venture Structure
Central Garden & Pet is contributing its distribution business into a joint venture with Phillips Pet Food & Supplies and Axar Capital, forming an independent entity under the Phillips brand. Central will receive cash proceeds and retain a 20% equity stake while Phillips and Axar hold the remaining 80%, and current distribution employees will transition to the new venture.
2. Operational Footprint
The joint venture spans 11 distribution centers across the United States, combining Phillips’ pet food distribution network with Central’s pet supplies platform to create a more agile and service-oriented nationwide delivery system for retail and independent partners.
3. Strategic Rationale and Financial Impact
By monetizing its distribution arm and redeploying the proceeds, Central will sharpen its focus on branded portfolio expansion and innovation under its Central to Home strategy. The venture is expected to drive greater operational efficiency and scalable growth for all stakeholders.
4. Leadership and Governance
The new business will be led by Blaine Phillips as CEO and Chairman, leveraging his deep industry relationships and customer-centric approach, with governance shared among Phillips, Axar Capital, and Central’s representation to guide long-term expansion.