Central Garden & Pet (NASDAQ: CENT, CENTA) announced a strategic partnership with Phillips Pet Food & Supplies to create a joint venture focused on pet product distribution across the United States.

Under the agreement, Central will receive cash proceeds and retain a 20% ownership stake in the new entity. Phillips and its investors, led by Axar Capital Management LP, will hold the remaining 80% ownership. The joint venture will operate under the Phillips brand as an independent company.

The partnership combines Phillips' pet food distribution capabilities with Central's pet supplies network. Phillips operates 11 distribution centers nationwide and serves feed stores, groomers, veterinarians, and independent pet retailers. The company was founded in 1938 and is headquartered in Easton, Pennsylvania.

Current Central Pet Distribution employees are expected to transition to the joint venture to maintain service continuity and customer relationships. Blaine Phillips, CEO and Chairman of Phillips Pet Food & Supplies, will lead the new business.

"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," said Niko Lahanas, CEO of Central Garden & Pet.

Central Garden & Pet reported fiscal 2025 net sales of $3.1 billion and employs over 6,000 people primarily across North America. The company operates in the pet and garden industries with brands including Kaytee, Nylabone, and Pennington.

Central was advised by Orrick, Herrington & Sutcliffe LLP as legal counsel and Ducera Partners LLC as financial advisor. Phillips was represented by Davis Polk & Wardwell LLP.