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Central Garden & Pet Company Launches Joint Venture With Phillips
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Key Takeaways
CENT will retain a 20% stake while Phillips investors hold the remaining 80%.
The venture combines Phillips' pet food reach with CENT's pet supplies network.
The deal sharpens CENT's focus on branded consumer growth and efficiency.
Central Garden & Pet Company (CENT - Free Report) has announced a strategic partnership with Phillips Pet Food & Supplies to establish a new pet distribution joint venture aimed at strengthening nationwide distribution capabilities. The collaboration brings together two complementary platforms to build a more agile, scalable and high-performance distribution network across the United States.
Under the agreement, the existing investors of Phillips, led by Axar Capital Management LP, will hold the 80% ownership stake in the newly formed entity, and CENT will receive cash proceeds while retaining the remaining stake of 20%. The joint venture will operate independently under the Phillips brand, focusing on expanding reach, improving efficiency and enhancing service capabilities for customers, employees and vendor partners. As part of the transition, Central Pet Distribution employees will move into the joint venture to maintain operational continuity, customer relationships and expertise. This transition is intended to maintain service quality while supporting a seamless integration of the two distribution platforms.
The joint venture combines Phillips’ strength in pet food distribution with CENT’s leadership in pet supplies, creating a more comprehensive and efficient network. With an established footprint that includes multiple distribution centers across the United States, Phillips brings significant operational scale and customer reach, serving a wide range of independent retailers and specialty channels.
This partnership also allows Central Garden & Pet to sharpen its focus on its core branded consumer strategy while positioning its distribution business for long-term success within a larger, more dedicated platform. By aligning with Phillips, the company aims to enhance operational efficiency, accelerate growth opportunities and strengthen service offerings across the pet distribution ecosystem.
Zacks Rundown for CENT
CENT’s shares have gained 29.2% in the past six months compared with the industry’s growth of 13.5%. CENT presently carries a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
From a valuation standpoint, CENT trades at a forward price-to-earnings ratio of 13.25, lower than the industry’s average of 15.95.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CENT’s current fiscal-year sales & earnings implies year-over-year growth of 3.3% and 3.9%, respectively.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks have been discussed below:
Petco Health & Wellness Company, Inc. (WOOF - Free Report) operates as a pet specialty retailer, focusing on enhancing the lives of pets and their pet parents. At present, the company flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WOOF’s current fiscal-year sales and earnings implies growth of 1% and 21.1%, respectively, from the year-ago figures. WOOF has delivered a trailing four-quarter earnings surprise of 275%, on average.
Chewy, Inc. (CHWY - Free Report) engages in the e-commerce business in the United States. At present, CHWY holds a Zacks Rank of 2.
The Zacks Consensus Estimate for CHWY’s current fiscal-year sales and earnings implies growth of 8.6% and 28.4%, respectively, from the year-ago figures. CHWY has delivered a trailing four-quarter negative earnings surprise of 1.5%, on average.
Spectrum Brands Holdings, Inc. (SPB - Free Report) operates as a branded consumer products and home essentials company in North America, Europe, the Middle East, Africa, Latin America, and the Asia-Pacific regions. At present, the company holds a Zacks Rank of 2.
The Zacks Consensus Estimate for SPB’s current fiscal-year sales implies growth of 0.6%, and the same for current fiscal-year earnings implies a decline of 9.8% from the year-ago figures. SPB has delivered a trailing four-quarter earnings surprise of 67.6%, on average.
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Central Garden & Pet Company Launches Joint Venture With Phillips
Key Takeaways
Central Garden & Pet Company (CENT - Free Report) has announced a strategic partnership with Phillips Pet Food & Supplies to establish a new pet distribution joint venture aimed at strengthening nationwide distribution capabilities. The collaboration brings together two complementary platforms to build a more agile, scalable and high-performance distribution network across the United States.
Under the agreement, the existing investors of Phillips, led by Axar Capital Management LP, will hold the 80% ownership stake in the newly formed entity, and CENT will receive cash proceeds while retaining the remaining stake of 20%. The joint venture will operate independently under the Phillips brand, focusing on expanding reach, improving efficiency and enhancing service capabilities for customers, employees and vendor partners. As part of the transition, Central Pet Distribution employees will move into the joint venture to maintain operational continuity, customer relationships and expertise. This transition is intended to maintain service quality while supporting a seamless integration of the two distribution platforms.
The joint venture combines Phillips’ strength in pet food distribution with CENT’s leadership in pet supplies, creating a more comprehensive and efficient network. With an established footprint that includes multiple distribution centers across the United States, Phillips brings significant operational scale and customer reach, serving a wide range of independent retailers and specialty channels.
This partnership also allows Central Garden & Pet to sharpen its focus on its core branded consumer strategy while positioning its distribution business for long-term success within a larger, more dedicated platform. By aligning with Phillips, the company aims to enhance operational efficiency, accelerate growth opportunities and strengthen service offerings across the pet distribution ecosystem.
Zacks Rundown for CENT
CENT’s shares have gained 29.2% in the past six months compared with the industry’s growth of 13.5%. CENT presently carries a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
From a valuation standpoint, CENT trades at a forward price-to-earnings ratio of 13.25, lower than the industry’s average of 15.95.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CENT’s current fiscal-year sales & earnings implies year-over-year growth of 3.3% and 3.9%, respectively.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks have been discussed below:
Petco Health & Wellness Company, Inc. (WOOF - Free Report) operates as a pet specialty retailer, focusing on enhancing the lives of pets and their pet parents. At present, the company flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WOOF’s current fiscal-year sales and earnings implies growth of 1% and 21.1%, respectively, from the year-ago figures. WOOF has delivered a trailing four-quarter earnings surprise of 275%, on average.
Chewy, Inc. (CHWY - Free Report) engages in the e-commerce business in the United States. At present, CHWY holds a Zacks Rank of 2.
The Zacks Consensus Estimate for CHWY’s current fiscal-year sales and earnings implies growth of 8.6% and 28.4%, respectively, from the year-ago figures. CHWY has delivered a trailing four-quarter negative earnings surprise of 1.5%, on average.
Spectrum Brands Holdings, Inc. (SPB - Free Report) operates as a branded consumer products and home essentials company in North America, Europe, the Middle East, Africa, Latin America, and the Asia-Pacific regions. At present, the company holds a Zacks Rank of 2.
The Zacks Consensus Estimate for SPB’s current fiscal-year sales implies growth of 0.6%, and the same for current fiscal-year earnings implies a decline of 9.8% from the year-ago figures. SPB has delivered a trailing four-quarter earnings surprise of 67.6%, on average.