The plants, property of ex-Mars manufacturer Red Collar Pet Foods, will cost the company $700 million.
The three plants are located in Orangeburg (South Carolina), Clinton (Oklahoma) and Washington Court House (Ohio) and will be part of Hill’s global supply network, producing dry pet food, especially for its Science Diet and Prescription Diet portfolio.
The American multinational considers that this investment will support the global expansion of its pet business. Noel Wallace, Chairman, President and Chief Executive Officer of Colgate-Palmolive Company, believes Hill’s is “growing well.”
According to the company, the acquisition is subject to regulatory approval and is not included in Hill’s current guidance, as well as not being expected to have impact on diluted earnings per share this year.
Transition period
The owner of the plants is Tennessee-based manufacturer Red Collar Pet Foods, which until 2018 was part of Mars Petcare’s exclusive brands. Currently, it owns six manufacturing facilities across the United States, operating their private brands and contract manufacturing companies with end-to-end capabilities.
The company will manage the dry pet food private label business for a transitional period and will continue to own and operate its pet treats business and facilities, according to Colgate.
At least 350 employees from Red Collar Pet Foods will be transferred to the new ownership.
New facility
Besides the Red Collar plants, Hill’s is currently building a new canned pet food manufacturing facility in Tonganoxie, Kansas, scheduled to start production in 2023.
The company also acquired last April a canned pet food plant in Italy, to focus on its science-led pet nutrition diets.
“This investment will help further strengthen the Hill’s business today and for the long term,” claimed Hill’s Pet Nutrition President John Hazlin.
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