Colgate-Palmolive Enters Fresh Pet Food Market with Prime100 Acquisition

Colgate-Palmolive Company (NYSE:CL) has announced an agreement to acquire Care TopCo Pty Ltd, owner of the Prime100 pet food brand in Australia. This strategic move aligns with Colgate's growth strategy of investing in faster-growing product segments adjacent to its core categories, providing Hill's Pet Nutrition division with an entry into the fast-growing fresh pet food category while strengthening its presence in the Australian market.

Prime100, launched in 2014 and based in Melbourne, is a leading fresh pet food brand offering refrigerated and shelf-stable products. The brand is known for its science-backed product lines and veterinary endorsement, which align perfectly with Hill's existing market positioning. The acquisition will add a high-growth, profitable fresh dog food asset to the Hill's division portfolio, with the opportunity to drive continued growth through expanded distribution and awareness.

The transaction will be financed through a combination of debt and cash, with closing expected in the second quarter of 2025, subject to Australian regulatory approval. The acquisition is not expected to have a material impact on diluted earnings per share in 2025.

Colgate-Palmolive's acquisition of Prime100 positions the company to capitalize on two significant trends: the humanization of pets and the shift toward fresh, premium pet nutrition. The deal provides immediate access to established distribution channels in Australia's pet specialty retail sector, which can be leveraged for broader Hill's product portfolio expansion.

The strategic value of this acquisition extends beyond immediate financial returns, as it provides Hill's with valuable expertise in fresh pet food manufacturing and distribution. This knowledge could prove invaluable for potential future expansion into other markets where fresh pet food demand is growing.

In conclusion, Colgate-Palmolive's acquisition of Prime100 is a strategic move that aligns with the company's long-term growth strategy. By entering the fast-growing fresh pet food category and strengthening its presence in the Australian market, Colgate-Palmolive is well-positioned to capture high-margin growth opportunities in adjacent markets. The acquisition of Prime100 provides Hill's Pet Nutrition division with valuable expertise in fresh pet food manufacturing and distribution, which can be leveraged for future expansion and innovation.