Central Garden & Pet Expands into Europe with €400 Million Acquisition of TRIXIE Heimtierbedarf

Consolidation is the name of game in Companion Animals – A Strategic Transatlantic Expansion into Europe’s €10B Specialty Pet Market, sets the stage for more simialr acquisitions to follow…

Central Garden & Pet Company (NASDAQ: CENT, CENTA), a Walnut Creek, California-based leader in the U.S. pet and garden supplies industries, entered into a definitive Sale and Purchase Agreement to acquire an approximate 80% majority stake in TRIXIE Heimtierbedarf GmbH & Co. KG. Headquartered in Tarp, Germany, TRIXIE is recognized as a major European developer, manufacturer, and distributor of pet accessories and snacks.

The strategic transaction provides Central—a $3.1 billion consumer products enterprise—with an immediate physical manufacturing, logistics, and retail footprint in the €10 billion European pet supplies and treats market.

Transaction Structure and Financial Terms

Under the terms disclosed in Central’s regulatory SEC filings (Form 8-K), the total consideration for the 80% equity interest reaches up to €400 million:

• Upfront Cash Consideration: Approximately €340 million in cash delivered at closing, subject to standard working capital adjustments.

• Performance Earn-Out: Contingent earn-out potential of up to €60 million, tied directly to TRIXIE’s operational performance targets.

• Valuation Multiple: Implies an EV/EBITDA multiple of 8.1x based on performance (inclusive of earn-outs).

• Retained Equity & Governance: Founder Bonnik Hansen and minority shareholders (including Dirk Jessen and Volker Haak) will retain a 20% equity stake.

The agreement includes reciprocal put and call options exercisable after a minimum three-year holding period, allowing Central a structured pathway toward full 100% ownership while preserving institutional founder knowledge.

Deal Architecture Summary

Operational Synergies: Scale, Logistics, and R&D Capabilities

Founded in 1974, TRIXIE operates a high-volume supply platform employing nearly 600 workers across Europe. The company launches approximately 500 new SKUs annually, backed by an in-house product design engine.

For Central Garden & Pet, the acquisition provides immediate strategic advantages:

1. Bypassing European Fragmentation: Unlike the consolidated U.S. pet supply market dominated by major platforms, Europe’s pet specialty channel remains highly fragmented. Acquiring TRIXIE grants Central direct relationships with more than 30,000 retail locations without having to build regional distribution networks from scratch.

2. Proprietary Brand Density: Nearly 90% of TRIXIE’s revenue stems from its proprietary own-brand label rather than white-label or licensed production. This margin profile supports Central’s long-term margin expansion goals.

3. Cross-Atlantic Sourcing Efficiencies: Central gains reciprocal opportunities to market its North American pet brands through TRIXIE’s distribution network, while bringing TRIXIE’s snack and accessory SKUs into U.S. retail channels.

Leadership & Advisory Framework

To maintain commercial continuity and preserve retail partner trust, TRIXIE will operate as an independent unit within Central’s Pet Segment. Managing Directors Dirk Jessen, Burkhard Friedrichsen, and Danny Bollerey will continue leading the German business operations.

Executive Statements

“The merger with Central Garden & Pet is a significant milestone in TRIXIE’s 50-year history. When searching for a partner, it was important to us to find a company that shares our values, our corporate culture, and our long-term vision. Central is exactly the right partner to build on this strong foundation.”

— Bonnik Hansen, Founder of TRIXIE Heimtierbedarf

“The addition of TRIXIE strengthens Central’s position across key European markets, adding a high-quality portfolio, an established logistics platform, and an experienced management team.”

— Niko Lahanas, Chief Executive Officer of Central Garden & Pet

Transaction Advisors

• Buy-Side (Central Garden & Pet): Financial Advisory by Rothschild & Co; Legal Counsel by Freshfields LLP.

• Sell-Side (TRIXIE Heimtierbedarf): Financial Advisory by Deutsche Bank AG; Legal Counsel by Gibson, Dunn & Crutcher LLP.