Colgate-Palmolive Company Announces Agreement to Acquire Prime100

Rhea-AI Summary

Colgate-Palmolive (NYSE:CL) has announced an agreement to acquire Care TopCo Pty , owner of the Prime100 pet food brand in Australia. The acquisition will provide Hill's Pet Nutrition division 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. The transaction will be financed through debt and cash, with closing expected in the second quarter of 2025, subject to Australian regulatory approval.

The acquisition aligns with Colgate's growth strategy of investing in faster-growing product segments adjacent to core categories. The company states the transaction is not expected to have a material impact on diluted earnings per share in 2025.

Positive

• Entry into fast-growing fresh pet food category
• Expansion of Hill's Pet Nutrition portfolio in Australian market
• Acquisition of an established, veterinarian-endorsed brand
• Addition of a high-growth, profitable asset

Negative

• Increase in debt due to acquisition financing
• No material earnings per share impact expected in 2025
• Regulatory approval requirement could delay closing

Insights

Financial Analyst

This strategic acquisition marks Colgate-Palmolive's calculated entry into the rapidly expanding fresh pet food segment, which has been experiencing double-digit growth globally as pet owners increasingly prioritize premium, fresh nutrition options. Through Hill's Pet Nutrition division, this move demonstrates the company's commitment to capturing high-margin growth opportunities in adjacent markets.

Prime100's business model is particularly attractive for several reasons:

• The brand's veterinary endorsement and science-backed products align perfectly with Hill's existing market positioning
• Its premium pricing strategy supports higher margins compared to traditional pet food segments
• The Australian market entry provides geographic diversification and expansion opportunities in the Asia-Pacific region

The financing structure, combining debt and cash, suggests a prudent approach to capital allocation. The statement that the deal won't materially impact 2025 EPS indicates either a relatively small acquisition size or expected operational synergies offsetting integration costs. The regulatory approval requirement in Australia presents minimal risk given Colgate-Palmolive's presence in the local fresh pet food market.

This acquisition positions Colgate-Palmolive 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 extends beyond immediate financial returns, as this acquisition provides Hill's with valuable expertise in fresh pet food manufacturing and distribution - critical capabilities as the industry continues to evolve toward fresher, less processed options. This knowledge could prove invaluable for potential future expansion into other markets where fresh pet food demand is growing.

NEW YORK--(BUSINESS WIRE)-- As part of its growth strategy, which includes investing in faster-growing product segments adjacent to its core categories, Colgate-Palmolive Company (NYSE:CL) today announced that it has agreed to acquire Care TopCo Pty Ltd, owner of the Prime100 pet food brand. This acquisition provides the Company’s Hill’s Pet Nutrition division with an entry into the fast-growing fresh pet food category while complementing its existing science-led, veterinarian-endorsed specialty pet food diets and strengthening its presence in the Australian pet food market.

Based in Melbourne, Australia, Prime100 is a fresh pet food brand offering both refrigerated and shelf stable products, sold to pet specialty and other retailers in Australia. Launched in 2014, Prime100 is a leading fresh pet food brand in Australia, driven by its science-backed product lines and veterinary endorsement.

Noel Wallace, Colgate’s Chairman, President and Chief Executive Officer commented, “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.”

John Hazlin, President of Hill’s Pet Nutrition, added, “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.”

The transaction will be financed with a combination of debt and cash and is currently expected to close in the second quarter of 2025. The acquisition is conditioned upon receipt of regulatory approval in Australia.

The transaction is not expected to have a material impact on diluted earnings per share in 2025.

Wachtell, Lipton, Rosen & Katz and Addisons acted as legal advisors and BofA Securities acted as financial advisor to Colgate-Palmolive on the transaction. Gilbert + Tobin acted as legal advisors and Houlihan Lokey acted as financial advisor to Prime100 on the transaction.

About Colgate-Palmolive Company

Colgate-Palmolive Company is a caring, innovative growth company that is reimagining a healthier future for all people, their pets and our planet. Focused on Oral Care, Personal Care, Home Care and Pet Nutrition, we sell our products in more than 200 countries and territories under brands such as Colgate, Palmolive, elmex, hello, meridol, Sorriso, Tom’s of Maine, EltaMD, Filorga, Irish Spring, Lady Speed Stick, PCA SKIN, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion, Fabuloso, Murphy, Soupline and Suavitel, as well as Hill’s Science Diet and Hill’s Prescription Diet. We are recognized for our leadership and innovation in promoting sustainability and community wellbeing, including our achievements in decreasing plastic waste and promoting recyclability, saving water, conserving natural resources and improving children’s oral health through the Colgate Bright Smiles, Bright Futures program, which has reached approximately 1.8 billion children and their families since 1991. For more information about Colgate’s global business and how we are building a future to smile about, visit www.colgatepalmolive.com. CL-C

About Hill's Pet Nutrition

Founded more than 75 years ago with an unwavering commitment to science-led pet nutrition, Hill's Pet Nutrition is on a mission to help enrich and lengthen the special relationships between people and their pets. Hill's is dedicated to pioneering research for dogs and cats using a scientific understanding of their specific dietary needs. As a leading veterinarian recommended pet nutrition brand, knowledge is our first ingredient with 220+ veterinarians, PhD nutritionists and food scientists working to develop breakthrough innovations in pet health. Hill's Prescription Diet therapeutic nutrition plus our everyday wellness product line, Hill's Science Diet, are sold at vet clinics and pet specialty retailers worldwide. For more information about our products and nutritional philosophy, visit HillsPet.com.

Cautionary Statement on Forward-Looking Statements

This press release may contain forward-looking statements (as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission (SEC) in its rules, regulations and releases) that set forth anticipated results based on management’s current plans and assumptions. Such statements may relate to the expected timing of the closing of the transaction and the expected impact on 2025 earnings, among other matters. These statements are made on the basis of the Company’s views and assumptions as of this time and the Company undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, except as required by law or by the rules and regulations of the SEC. Moreover, the Company does not, nor does any other person, assume responsibility for the accuracy and completeness of these statements. The Company cautions investors that any such forward-looking statements are not guarantees of future performance and that actual events or results may differ materially from those statements. For more information about factors that could impact the Company’s business and cause actual results to differ materially from forward-looking statements, investors should refer to the Company’s filings with the SEC (including, but not limited to, the information set forth under the captions “Risk Factors” and “Cautionary Statement on Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent filings with the SEC). Copies of these filings may be obtained upon request from the Company’s Investor Relations Department or on the Company’s website at www.colgatepalmolive.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250213237764/en/

Investor Relations: investor_relations@colpal.com

Communications: colgate_palmolive_media_inquiry@colpal.com

Source: Colgate-Palmolive Company

FAQ

When will Colgate-Palmolive (CL) complete the Prime100 acquisition?

The acquisition is expected to close in the second quarter of 2025, subject to regulatory approval in Australia.

How will Colgate-Palmolive (CL) finance the Prime100 acquisition?

The transaction will be financed with a combination of debt and cash.

What is the impact of the Prime100 acquisition on CL's earnings per share in 2025?

The transaction is not expected to have a material impact on diluted earnings per share in 2025.

How does Prime100 fit into Colgate-Palmolive's growth strategy?

Prime100 aligns with CL's strategy of investing in faster-growing product segments adjacent to core categories, specifically expanding Hill's Pet Nutrition into the fresh pet food category.

What products does Prime100 offer in the Australian market?

Prime100 offers both refrigerated and shelf stable pet food products, sold to pet specialty and other retailers in Australia.