Agreement Colgate-Palmolive to Acquire Prime100 in New Agreement
As part of its strategic growth initiatives, Colgate-Palmolive Company (NYSE: CL) has announced a definitive agreement to acquire Care TopCo Pty Ltd, the parent company of the Australian pet food brand Prime100. This acquisition marks a significant step for Colgate-Palmolive’s Hill’s Pet Nutrition division as it seeks to enter the fast-growing fresh pet food sector while reinforcing its leadership in science-backed, veterinarian-endorsed pet nutrition solutions. The move also strengthens the company’s foothold in the Australian pet food market, a region experiencing increased demand for premium pet nutrition products.
Expanding into the Fresh Pet Food Market
Colgate-Palmolive’s acquisition of Prime100 aligns with its broader vision of investing in high-growth product categories that complement its existing portfolio. Prime100, which is based in Melbourne, Australia, has established itself as a leader in the fresh pet food sector, offering both refrigerated and shelf-stable pet food products. Since its launch in 2014, the brand has gained a strong reputation due to its science-driven approach and endorsements from veterinarians.
Prime100 specializes in providing targeted nutritional solutions for pets with specific dietary needs, including novel protein diets and single-protein formulations designed for pets with allergies or sensitivities. The company’s commitment to high-quality ingredients and scientific research has contributed to its strong market position and consumer trust in Australia.
The increasing popularity of fresh pet food reflects a broader trend in the pet nutrition industry, with pet owners increasingly prioritizing high-quality, natural, and minimally processed food for their pets. The acquisition enables Hill’s Pet Nutrition, a global leader in veterinary-recommended pet diets, to diversify its offerings and tap into this growing consumer preference.
Leadership Perspectives on the Acquisition
Colgate-Palmolive’s Chairman, President, and Chief Executive Officer, Noel Wallace, emphasized the strategic importance of the acquisition, stating, “Prime100 is a strong, veterinarian-endorsed, premium-priced brand with distinctive positioning that fits well within our long-term pet nutrition growth strategy. We are excited that this 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.”
Wallace’s statement underscores Colgate-Palmolive’s focus on expanding its pet nutrition business beyond traditional dry and wet pet food products. By integrating Prime100’s fresh pet food expertise into Hill’s existing framework, the company aims to further develop its advanced nutrition offerings to meet the evolving needs of pet owners worldwide.
John Hazlin, President of Hill’s Pet Nutrition, echoed these sentiments, stating, “Hill’s is committed to enriching and lengthening the special relationship between people and their pets. With this addition, Hill’s will have an even larger, complementary portfolio of advanced nutrition products, backed by science and endorsed by vets, to help pet parents meet their pets’ specialized dietary needs. We look forward to working with the Prime100 team and are confident that our joint expertise will drive new discoveries, empower veterinarians, and provide pet parents with more tailored nutritional solutions.”
Hazlin’s remarks highlight the shared mission of both companies in advancing pet health through nutrition. The acquisition is expected to foster new research initiatives, leading to innovative dietary solutions that address specific health concerns in pets.
Impact on Hill’s Pet Nutrition and the Australian Market
Hill’s Pet Nutrition has been at the forefront of veterinary-led pet diets, offering specialized formulations designed to support pets with medical conditions such as digestive disorders, kidney disease, and obesity. The addition of Prime100 to its portfolio will enable Hill’s to cater to an even broader audience, including pet owners who prefer fresh and natural food options for their animals.
Australia’s pet food market has experienced steady growth, driven by rising pet ownership and increasing consumer awareness of the benefits of high-quality nutrition. According to industry reports, the demand for fresh and natural pet food has surged in recent years, mirroring trends observed in the human food industry. With more pet owners treating their pets as family members, there is a greater willingness to invest in premium food products that promote longevity and overall health.
The acquisition of Prime100 provides Colgate-Palmolive with a strong foothold in this expanding market. By leveraging Hill’s global reach and marketing expertise, the company aims to accelerate Prime100’s growth and expand its distribution beyond Australia. This could include entry into other key pet food markets such as the United States, Europe, and Asia, where demand for fresh pet food is also on the rise.
Financial and Regulatory Aspects of the Acquisition
Colgate-Palmolive plans to finance the transaction using a combination of debt and cash. The deal is expected to close in the second quarter of 2025, pending regulatory approval from Australian authorities. While the acquisition is not anticipated to have a material impact on Colgate-Palmolive’s diluted earnings per share in 2025, the long-term benefits of the deal could be substantial as Hill’s continues to expand its presence in the premium pet food sector.
To ensure a smooth transaction process, Colgate-Palmolive has engaged Wachtell, Lipton, Rosen & Katz and Addisons as legal advisors, while BofA Securities is serving as its financial advisor. On the Prime100 side, Gilbert + Tobin is acting as legal counsel, and Houlihan Lokey is providing financial advisory services.
Future Prospects and Strategic Implications
The acquisition of Prime100 represents a broader shift in Colgate-Palmolive’s approach to pet nutrition, emphasizing fresh, science-driven dietary solutions. As more pet owners prioritize health-conscious choices for their animals, companies like Hill’s Pet Nutrition are adapting by expanding their offerings to include alternative pet food formats.
Looking ahead, Colgate-Palmolive is expected to invest further in research and development to enhance Prime100’s product offerings. This may include the introduction of new formulations tailored to specific pet health needs, as well as expanding Prime100’s product line to include additional fresh food options for both dogs and cats.
Additionally, Hill’s could leverage its existing partnerships with veterinary professionals to promote Prime100’s products within clinical settings. Veterinarian recommendations play a crucial role in influencing pet owners’ purchasing decisions, and integrating Prime100 into Hill’s existing distribution channels could drive higher adoption rates among pet owners seeking premium nutritional solutions for their pets.
The pet food industry continues to evolve, with innovations in ingredient sourcing, sustainability, and personalized nutrition shaping the future landscape. As a result, Colgate-Palmolive’s investment in Prime100 positions the company to remain at the forefront of these developments, ensuring that it remains competitive in an increasingly dynamic market.
