Colgate-Palmolive to Buy Three Dry Pet-Food Plants for $700 Million

By Colin Kellaher

Colgate-Palmolive Co. on Monday said it will buy three dry pet-food manufacturing plants for $700 million as part of efforts by the consumer-products company to support the growth of its Hill's Pet Nutrition business.

The New York company said it is buying the plants in South Carolina, Oklahoma and Ohio from privately held Red Collar Pet Foods and will integrate them into the Hill's supply network to produce dry food for the Science Diet and Prescription Diet brands.

About 350 Red Collar employees will join Hill's as part of the deal.

Hill's, which accounted for 20% of Colgate's second-quarter sales, is building a canned pet-food manufacturing plant in Kansas that is slated to begin production next year and in April acquired a canned pet-food plant in Italy to help meet rising demand.

Red Collar, created in December 2018 when private-equity firm Arbor Investments acquired Mars Petcare's Exclusive Brands business, will continue to own and operate its pet-treats business and facilities.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

08-01-22 0744ET