Phillips Pet Food & Supplies and Animal Supply Co., have terminated a plan to merge. The distributors reached an Agreement and Plan of Merger earlier this year and announced a plan to combine the two companies in February.
While Phillips and ASC believe in the merits of a potential transaction, the economic uncertainties caused by the COVID-19 pandemic have made it difficult to close on many business transactions in the United States, including this merger of Phillips and ASC, company officials said.
The original transaction, which included new capital to fund future growth, aimed to create a stronger platform with enhanced capabilities to support pet retailers and brand partners, officials reported in February. Specifically, the transaction was aimed at enhancing the distribution footprint and service model.
Last week, ASC reported that a group of its existing institutional investors have provided more than $40 million of capital for the company and acquired equity to position ASC for continued growth within the pet industry. The transactions closed on Friday, Aug. 14.
Phillips and ASC remain committed to supporting their individual retailer customers and brand partners going forward, officials added.