Central Garden & Pet Acquires Majority Stake in German Pet Supplies Company TRIXIE
Central Garden & Pet (NASDAQ:CENT) has agreed to acquire a majority stake in Germany-based pet supplies company TRIXIE, aiming to establish itself as the world's largest pet-supplies firm and strengthen its presence in Europe. The acquisition is valued at a high-single-digit multiple before synergies but did not disclose an exact purchase price. CEO Niko Lahanas emphasized that this move represents significant growth potential through cost savings, expanded distribution channels across both regions, e-commerce development, and increased exposure to cat products. Despite TRIXIE's recent low single-digit sales declines, the deal is expected to be margin- and earnings-accretive for Central. The company plans a cautious integration strategy in its first year, prioritizing cultural alignment with TRIXIE while gradually pursuing synergies. Lahanas described the transaction as a 'once-in-a-lifetime opportunity,' citing similarities between both companies' founder-driven cultures. The acquisition was facilitated by an auction process initiated after TRIXIE's founder sought to exit and establish a foundation, allowing Central to build strong relationships with key leadership at TRIXIE. The deal also reflects the company’s strategic interest in Europe, where it sees potential for further expansion due to market fragmentation.
Tickers: $CENT