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Central Garden Expands Europe Pet Business With TRIXIE Acquisition
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Key Takeaways
Central Garden & Pet agreed to acquire a majority stake in Europe's pet supplies leader, TRIXIE.
CENT expects the deal to expand its European presence and support long-term organic growth.
CENT expects about 10% of net sales to come from outside the United States after the acquisition.
Central Garden & Pet Company (CENT - Free Report) has entered into a definitive agreement to acquire a majority stake in TRIXIE Heimtierbedarf GmbH & Co. KG, Europe's leading pet supplies and pet snacks company. The transaction marks an important step in expanding Central Garden's European footprint while supporting its Central to Home strategy of broadening its portfolio of pet and garden brands and building a stronger global pet supplies platform.
Founded in 1974 and headquartered in Tarp, Germany, TRIXIE serves more than 30,000 pet specialty retailers across international markets with a portfolio of over 6,000 products spanning dogs, cats, birds, reptiles and small animals. Around 90% of its sales come from proprietary brands, supported by consistent product development, extensive category knowledge and advanced logistics and fulfillment operations.
Management expects the acquisition to strengthen Central Garden's ability to benefit from long-term industry trends such as increasing spending on pet health, premium products, pet humanization and pet technology. The combination is also expected to support organic growth through continued product innovation, broaden the company's distribution reach and create a scalable platform for expansion within Europe's fragmented pet specialty market. Following the transaction, approximately 10% of Central Garden's net sales are expected to be generated outside the United States, further strengthening its international presence.
Following completion of the transaction, TRIXIE will operate as part of Central Garden's Pet segment, while its current leadership team will continue managing the business to ensure continuity. Central Garden also intends to utilize its sourcing network and product development expertise to support TRIXIE's future growth while maintaining the company's entrepreneurial culture, customer-focused approach and established market position. The transaction is expected to close during the first half of Central Garden's fiscal 2027, subject to regulatory approvals and customary closing conditions.
The Zacks Rundown for CENT
Shares of this Zacks Rank #4 (Sell) company have soared 30.2% in the past six months compared with the industry’s growth of 3.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, CENT trades at a forward price-to-earnings ratio of 14.51, lower than the industry’s average of 14.73.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CENT’s current and next fiscal year earnings implies year-over-year growth of 5.9% and 3.8%, respectively.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Colruyt Group N.V. (CUYTY - Free Report) , together with its subsidiaries, engages in the retail, wholesale, food service, and other activities in Belgium, France, and internationally. It presently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CUYTY's current financial-year sales and earnings indicates 7.4% and 2.5% growth, respectively, from the last year.
Phibro Animal Health Corporation (PAHC - Free Report) operates as an animal health and mineral nutrition company in the United States, Latin America and Canada, Europe, the Middle East, Africa, and the Asia Pacific. PAHC currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for PAHC's current fiscal-year sales and earnings implies growth of 14.8% and 47.4%, respectively, from the year-ago actuals. PAHC delivered a trailing four-quarter earnings surprise of 16.3%, on average.
Trupanion, Inc. (TRUP - Free Report) together with its subsidiaries, provides medical insurance for cats and dogs on a subscription basis in the United States, Canada, Continental Europe and Australia. It currently holds a Zacks Rank #2.
The Zacks Consensus Estimate for TRUP’s current financial-year sales and earnings indicates 9.4% and 22.2% growth from the last year, respectively. TRUP reported a trailing four-quarter average earnings surprise of 250%.
View the Zacks #1 Rank List
Image: Bigstock
Central Garden Expands Europe Pet Business With TRIXIE Acquisition
Key Takeaways
Central Garden & Pet Company (CENT - Free Report) has entered into a definitive agreement to acquire a majority stake in TRIXIE Heimtierbedarf GmbH & Co. KG, Europe's leading pet supplies and pet snacks company. The transaction marks an important step in expanding Central Garden's European footprint while supporting its Central to Home strategy of broadening its portfolio of pet and garden brands and building a stronger global pet supplies platform.
Founded in 1974 and headquartered in Tarp, Germany, TRIXIE serves more than 30,000 pet specialty retailers across international markets with a portfolio of over 6,000 products spanning dogs, cats, birds, reptiles and small animals. Around 90% of its sales come from proprietary brands, supported by consistent product development, extensive category knowledge and advanced logistics and fulfillment operations.
Management expects the acquisition to strengthen Central Garden's ability to benefit from long-term industry trends such as increasing spending on pet health, premium products, pet humanization and pet technology. The combination is also expected to support organic growth through continued product innovation, broaden the company's distribution reach and create a scalable platform for expansion within Europe's fragmented pet specialty market. Following the transaction, approximately 10% of Central Garden's net sales are expected to be generated outside the United States, further strengthening its international presence.
Following completion of the transaction, TRIXIE will operate as part of Central Garden's Pet segment, while its current leadership team will continue managing the business to ensure continuity. Central Garden also intends to utilize its sourcing network and product development expertise to support TRIXIE's future growth while maintaining the company's entrepreneurial culture, customer-focused approach and established market position. The transaction is expected to close during the first half of Central Garden's fiscal 2027, subject to regulatory approvals and customary closing conditions.
The Zacks Rundown for CENT
Shares of this Zacks Rank #4 (Sell) company have soared 30.2% in the past six months compared with the industry’s growth of 3.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, CENT trades at a forward price-to-earnings ratio of 14.51, lower than the industry’s average of 14.73.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CENT’s current and next fiscal year earnings implies year-over-year growth of 5.9% and 3.8%, respectively.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Colruyt Group N.V. (CUYTY - Free Report) , together with its subsidiaries, engages in the retail, wholesale, food service, and other activities in Belgium, France, and internationally. It presently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CUYTY's current financial-year sales and earnings indicates 7.4% and 2.5% growth, respectively, from the last year.
Phibro Animal Health Corporation (PAHC - Free Report) operates as an animal health and mineral nutrition company in the United States, Latin America and Canada, Europe, the Middle East, Africa, and the Asia Pacific. PAHC currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for PAHC's current fiscal-year sales and earnings implies growth of 14.8% and 47.4%, respectively, from the year-ago actuals. PAHC delivered a trailing four-quarter earnings surprise of 16.3%, on average.
Trupanion, Inc. (TRUP - Free Report) together with its subsidiaries, provides medical insurance for cats and dogs on a subscription basis in the United States, Canada, Continental Europe and Australia. It currently holds a Zacks Rank #2.
The Zacks Consensus Estimate for TRUP’s current financial-year sales and earnings indicates 9.4% and 22.2% growth from the last year, respectively. TRUP reported a trailing four-quarter average earnings surprise of 250%.