CL Set to Expand Hill's Pet Nutrition With the Prime100 Acquisition

Core Insights - Colgate-Palmolive Company has signed an agreement to acquire Care TopCo Pty Ltd, owner of the Australian pet food brand Prime100, as part of its expansion strategy into the fresh pet food market [1][2] - The acquisition aims to enhance Hill's Pet Nutrition division by complementing its existing specialty pet food products and strengthening its market presence in Australia [1][4] - The deal is expected to be completed in the second quarter of 2025, pending regulatory approval [4] Strategic Expansion - The acquisition aligns with Colgate's strategy of investing in high-growth adjacent categories and reinforces its veterinarian-endorsed pet food portfolio [2][5] - Prime100 is recognized as a premium brand in fresh pet food, which is expected to provide Hill's with opportunities for expanded distribution and increased brand awareness [2][5] - The acquisition will be funded through a mix of debt and cash, and while it is not expected to significantly impact earnings in 2025, it demonstrates a commitment to long-term growth in the pet nutrition sector [3][6] Market Position and Future Prospects - Prime100 has been a leading brand in fresh pet food since 2014, offering products that are both refrigerated and shelf-stable, backed by scientific research and veterinary recommendations [4][6] - The acquisition will provide Hill's with valuable expertise in fresh pet food manufacturing and distribution, which is crucial as the industry shifts towards fresher, less processed options [7] - Colgate continues to execute its strategy of delivering core and premium innovations while increasing advertising investments to strengthen brand presence [8][9]