Central Garden & Pet has announced a strategic partnership with Phillips Pet Food & Supplies to establish a joint venture focused on pet product distribution. The collaboration brings together two complementary platforms to create a more agile, nationwide network aimed at supporting growth, improving operational efficiency and enhancing service for customers, employees and vendor partners.
Under the agreement, Central will receive cash proceeds and retain a 20 percent stake in the new entity. Phillips and its existing investors, led by Axar Capital Management LP, will hold the remaining 80 percent. The business will operate independently under the Phillips brand, with a focus on scaling a high-performance national distribution platform.
Employees from Central’s pet distribution division are expected to transition to the joint venture, maintaining continuity in service, expertise and customer relationships. Their experience and established partnerships are expected to support a smooth transition and ongoing service quality.
Niko Lahanas, CEO of Central Garden & Pet, said, “Phillips and Central bring together highly complementary distribution capabilities. 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. By combining our distribution operations with Phillips, we are creating a more capable platform to better serve customers and vendors while continuing to invest in innovation, digital engagement, and brand development as we advance our Central to Home strategy.”
Blaine Phillips, CEO and Chairman of Phillips Pet Food & Supplies, said, “I built Phillips from a small family feed store into a large national distributor committed to improving the lives of pets and the people who care for them. Partnering with Central – an industry leader that shares our values – marks an exciting new chapter. Together, we’re positioned to serve our customers more effectively and expand our reach in new and innovative ways.”
Grant Mitchell, Deputy CIO of Axar Capital Management, added, “By bringing together complementary scale and service capabilities nationwide, this transaction represents a milestone for the Phillips platform and the broader pet distribution ecosystem. It uniquely positions Phillips to support the evolving needs of our customers and vendors nationwide while maintaining the service orientation that has defined both businesses for decades.”