Phillips Pet Food & Supplies and Central Garden & Pet contacted their customers on Friday to let them know of a joint venture between the two companies. On Monday, Phillips provide more information in a press release.
Among the highlights:
- Central will receive cash proceeds and retain a 20% 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.
- The companies will create a nationally scaled distribution platform with expanded reach, enhanced service capabilities and a more efficient supply chain.
- The combined network will serve all major channels, including specialty retailers, big box, eCommerce, farm and feed, second-party fulfillment and third-party logistics.
- The joint venture’s comprehensive portfolio will span pet food, supplies, fresh and frozen products across categories such as dog, cat, aquatics, small animal, equine and reptile.
- It will cover all 50 states.
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The press release reads in its entirety:
Easton, PA – Phillips Pet Food & Supplies (“Phillips”), a leading distributor in the pet food and supplies industry, today announced an agreement to form a strategic joint venture with Central Garden & Pet, a market leader in the pet and garden sectors. The partnership is designed to unlock new growth opportunities while enhancing service and value for vendors, customers, and employees.
Under the terms of the agreement, Central will receive cash proceeds and retain a 20% 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. The joint venture will operate as an independent company. “I built Phillips from a small family feed store into a national distributor focused on improving the lives of pets and the people who care for them,” said Blaine Phillips, CEO and Chairman of Phillips. “Partnering with Central—an industry leader that shares our values—represents an exciting next chapter. Together, we are well positioned to build on our legacy while delivering greater innovation and service across the pet care ecosystem.”
“Phillips and Central bring together highly complementary distribution capabilities,” said Niko Lahanas, CEO of Central Garden & Pet. “This joint venture reduces operational complexity, offers meaningful network optimization opportunities, and enables us to focus even more on building and investing in our branded portfolio. By streamlining our distribution footprint, we can allocate more resources toward our key initiatives, including innovation, digital engagement, and brand development, which are core to advancing our Central to Home strategy.”
Together, the companies will create a nationally scaled distribution platform with expanded reach, enhanced service capabilities, and a more efficient supply chain. The combined network will serve all major channels, including specialty retailers, big box, eCommerce, farm & feed, second-party fulfillment, and third-party logistics.
The joint venture will offer a comprehensive portfolio spanning pet food, supplies, fresh and frozen products across categories such as dog, cat, aquatics, small animal, equine, and reptile. With coverage across all 50 states, the platform is positioned to deliver increased value across the pet care ecosystem—providing vendors with broader market access and customers with the tools and resources needed to support long-term growth.
“By bringing together complementary scale and service capabilities nationwide, this transaction represents a milestone for the Phillips platform and the broader pet distribution ecosystem,” said Grant Mitchell, Deputy CIO of Axar Capital Management. “This transaction uniquely positions Phillips to support the evolving needs of our customers and vendors nationwide while maintaining the service orientation that has defines both businesses for decades.” Phillips was advised by Davis Polk as legal counsel. Central was advised by Orrick.
Retailers continued to discuss the new joint venture on Monday in the PETS+ Facebook group. Most questions related to timing and logistics for current Central customers. We’ve reached out to Phillips to get more info in these areas.
