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Phillips Heads West With Latest Distributor Merger

Posted: May 2, 2013, 6:30 p.m. EDT

Phillips Pet Food & Supplies, fresh off its purchase of Royal Pet Supplies, is acquiring three more distributors, pushing Phillips into the Western United States.

The takeover, announced today and effective June 1, involves PFX Pet Supply of West Sacramento, Calif., and PFX's sister companies Pet Food Ltd. of Tampa, Fla., and Denver-based Pet Food Ltd. Colorado.

Terms of the transaction were not reported, but PFX president Ced Damby will serve as president of West Coach operations and lead Phillips' veterinary division.

"Our companies share similar philosophies [and] cultures and respect the importance of the independent channel," Damby wrote in a letter also signed by Phillips CEO Blaine Phillips and Pet Food Ltd. CEO Bern Levine.

 Phillips Distribution Map
The new East and West Coast distribution territories of Phillips Pet Food & Supplies are shown in red and blue.
"Our goal and mission is to sustain the health and profitability of the independent pet specialty and veterinary channels," they stated. "We truly believe a major component of this goal is providing increased availability of products and services from a single-source distribution facility."

Consolidation of the distribution channel has ramped up in recent months.

Phillips, based in Easton, Pa., entered the aquatics sector in March with the purchase of Royal Pet Supplies. The merger combined Royal warehouses in Brentwood, N.Y., and Pompano Beach, Fla., with Phillips distribution centers in Easton; Taunton, Mass.; Spartanburg, S.C.; Plant City, Fla.; Clyde, Ohio; and Indianapolis.

In early 2012 Phillips purchased Mike's Feed Farm Wholesale Distribution Co. of Paterson, N.J.

Seattle-based Animal Supply Co. has been active as well, acquiring distributors operating in the Eastern, Southeastern and Western United States. The targets were Summit Pet Product Distributors of Greensboro, N.C.; Lone Star Pet Supply of Schertz, Texas; and Zeus & Co. California (West), a division of Chicago-based Zeus & Co.

Pet Food Ltd. gained market share in late 2011 during a merger with Pet Professionals Choice of Longwood, Fla.


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