Phillips Pet Food & Supplies and Animal Supply Co. (ASC) officials have reached a definitive agreement under which the two companies will combine. The transaction, which includes new capital to fund future growth, will create a stronger platform with enhanced capabilities to support pet retailers and brand partners, according to officials.
"Phillips and ASC have made clear progress toward building industry-leading distribution platforms and enabling our retailers and brands to delight their consumers," said Todd Shelton, CEO of Phillips in Easton, Pa. "We are confident that a combination with ASC will enhance support for our many pet specialty retailers."
Specifically, the transaction is aimed at enhancing the distribution footprint and service model. On a combined basis, officials said that they expect to deliver a broader product assortment with more efficient routing, improved fill rates and better service.
The combined platform, officials added, will also have expanded reach and ability to invest in digital solutions, such as the ASC Connect and Endless Aisles e-commerce offerings to support retailer and brand partner growth.
"We are excited about the partnership with Phillips," said Don McIntyre, CEO of Animal Supply Co. in Irving, Texas. "Our complementary distribution platforms will have greater reach and enable the combined company to provide enhanced and more efficient service—driving growth and profitability for our customers’ businesses. The ASC and Phillips teams will work together to facilitate a smooth transition for retailers and brands, as they position the combined company for long-term success."
The transaction is expected to close early in the second quarter of 2020.