Colgate-Palmolive Company Invests in Growth of its Hill’s Pet Nutrition Business with Agreement to Buy Three Manufacturing Plants from Red Collar Pet Foods
August 01 2022 - 6:55AM
Business Wire
Colgate-Palmolive Company plans to purchase three dry pet food
manufacturing plants in the U.S. from Red Collar Pet Foods for $700
million to support the global growth of its Hill’s Pet Nutrition
business.
The plants - in Orangeburg, South Carolina; Clinton, Oklahoma;
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 Diet brands. The purchase agreement includes
the transfer of the approximately 350 employees involved in the dry
pet food operations.
Hill’s is currently building a new canned pet food manufacturing
facility in Tonganoxie, Kansas, scheduled to begin production next
year, and in April completed the acquisition of a canned pet food
plant in Italy, also to meet demand for its science-led pet
nutrition diets.
“Our Hill’s business is growing well, and we continue to invest
to expand production capacity, improve our capabilities with
initiatives like our new Small Paws Innovation Center, and better
engage pet parents, veterinarians and Hill’s retail partners,” said
Noel Wallace, Chairman, President and Chief Executive Officer of
Colgate-Palmolive Company. “This investment will help further
strengthen the Hill’s business today and for the long term.”
John Hazlin, President of Hill’s Pet Nutrition, added: “Hill’s
is committed to enriching and lengthening the special relationship
between people and their pets, and this additional production
capability will help us reach more pets with our science-led foods
and enable us to raise the level of service we provide to the
specialty retailers and veterinary professionals that offer our
products. We look forward to welcoming members of the Red Collar
team to the Hill’s family.”
The acquisition is subject to regulatory approval and other
closing conditions. The acquisition is not included in our current
guidance, and is not expected to have a material impact on diluted
earnings per share in 2022.
Red Collar, an Arbor Investments portfolio company, will manage
the dry pet food private label business for a transition period and
will continue to own and operate its pet treats business and
facilities.
Wachtell, Lipton, Rosen & Katz acted as legal advisor to
Colgate-Palmolive and Perella Weinberg Partners LP acted as
financial advisor to Colgate-Palmolive on the transaction. Kirkland
& Ellis LLP served as legal advisor to Red Collar Pet Foods,
and Centerview Partners LLC served as financial advisor to Red
Collar Pet Foods on the transaction.
About Colgate-Palmolive Company
Colgate-Palmolive Company is a caring, innovative growth company
reimagining a healthier future for all people, their pets and our
planet. Focused on Oral Care, Personal Care, Home Care and Pet
Nutrition, we sell our products in more than 200 countries and
territories under brands such as Colgate, Palmolive, elmex, hello,
meridol, Sorriso, Tom’s of Maine, EltaMD, Filorga, Irish Spring,
PCA SKIN, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion,
Fabuloso, Soupline and Suavitel, as well as Hill’s Science Diet and
Hill’s Prescription Diet. We are recognized for our leadership and
innovation in promoting sustainability and community wellbeing,
including our achievements in decreasing plastic waste and
promoting recyclability, saving water, conserving natural resources
and improving children’s oral health through the Colgate Bright
Smiles, Bright Futures program, which has reached more than 1.4
billion children since 1991. For more information about Colgate’s
global business and how we are building a future to smile about,
visit www.colgatepalmolive.com. CL-C
About Hill's Pet Nutrition
Founded more than 80 years ago with an unwavering commitment to
science-led pet nutrition, Hill's Pet Nutrition is on a mission to
help enrich and lengthen the special relationships between people
and their pets. Hill's is dedicated to pioneering research for dogs
and cats using a scientific understanding of their specific needs.
As a leading veterinarian recommended pet food brand, knowledge is
our first ingredient with 220+ veterinarians, PhD nutritionists and
food scientists working to develop breakthrough innovations in pet
health. Hill's Prescription Diet therapeutic nutrition plus our
everyday foods, Hill's Science Diet, Hill's Healthy Advantage and
Hill's Bioactive Recipe, are sold at vet clinics and pet specialty
retailers worldwide. For more information about our products and
nutritional philosophy, visit HillsPet.com or HillsVet.com.
Cautionary Statement on Forward-Looking Statements
This press release may contain forward-looking statements (as
that term is defined in the U.S. Private Securities Litigation
Reform Act of 1995 or by the Securities and Exchange Commission
(SEC) in its rules, regulations and releases) that set forth
anticipated results based on management’s current plans and
assumptions. Such statements may relate to the expected impact on
2022 earnings, among other matters. These statements are made on
the basis of the Company’s views and assumptions as of this time
and the Company undertakes no obligation to update these statements
whether as a result of new information, future events or otherwise,
except as required by law or by the rules and regulations of the
SEC. Moreover, the Company does not, nor does any other person,
assume responsibility for the accuracy and completeness of these
statements. The Company cautions investors that any such
forward-looking statements are not guarantees of future performance
and that actual events or results may differ materially from those
statements. For more information about factors that could impact
the Company’s business and cause actual results to differ
materially from forward-looking statements, investors should refer
to the Company’s filings with the SEC (including, but not limited
to, the information set forth under the captions “Risk Factors” and
“Cautionary Statement on Forward-Looking Statements” in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2021 and subsequent Quarterly Reports on Form 10-Q). Copies of
these filings may be obtained upon request from the Company’s
Investor Relations Department or on the Company’s website at
www.colgatepalmolive.com.
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Thomas DiPiazza Colgate-Palmolive Company 212.310.2607
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