Why This Matters to Distributors: Scale and channel consolidation in pet distribution is accelerating, and independent distributors serving the pet specialty market will face a larger, better-capitalized competitor.
Central Garden & Pet and Phillips Pet Food & Supplies is forming a joint venture to combine their pet distribution operations into a single nationwide platform.
Under the terms of the agreement, Central will receive cash proceeds and retain a 20% ownership stake in the new entity. Phillips and its existing investors, led by private equity firm Axar Capital Management LP, will hold the remaining 80%. The venture will operate under the Phillips brand as an independent company. Central reported fiscal 2025 net sales of $3.1 billion.
The deal brings together two distinct distribution capabilities. Phillips, founded in 1938 and headquartered in Easton, Pennsylvania, operates 11 distribution centers across the United States and serves feed and farm stores, groomers, veterinarians, and independent pet retailers. Central contributes its pet supplies distribution operations and a branded portfolio that includes Nylabone, Kaytee and Aqueon, among other labels.
“This joint venture strengthens the foundation of our distribution business by placing it within a scaled platform built for growth, while enabling Central to further expand the reach of our branded pet supplies portfolio,” said Niko Lahanas, chief executive officer of Central Garden & Pet.
Blaine Phillips, chief executive officer and chairman of Phillips Pet Food & Supplies, will lead the combined entity. Phillips built the company from a single feed store into a national distributor before the Axar investment.
“Partnering with Central marks an exciting new chapter,” Blaine Phillips said. “Together, we’re positioned to serve our customers more effectively and expand our reach in new and innovative ways.”
For distributors competing in the pet specialty channel, the transaction consolidates two complementary supply chains into one platform with 11 distribution centers and the product breadth of Central’s branded portfolio behind it. Independent distributors serving feed stores, independent pet retailers and veterinary accounts will encounter a competitor with greater geographic reach and purchasing scale.
The deal also signals continued private equity interest in distribution consolidation. Axar’s involvement as the majority stakeholder positions the new venture for further acquisitions as the pet specialty market fragments between large-format retail, ecommerce, and independent channels.
Central was advised by Orrick, Herrington & Sutcliffe, and Ducera Partners. Phillips was advised by Davis Polk & Wardwell. The companies did not disclose the transaction value or a closing date.
Share this article:
