Colgate-Palmolive Company ( CL ) is broadening its footprint in the pet food industry through the purchase of Care TopCo Pty Ltd, the parent company of Prime100, an Australian fresh pet food brand.

Prime100, founded in 2014 and located in Melbourne, Australia, produces both refrigerated and shelf-stable pet food, which is distributed through pet care retailers and other Australian markets.

The acquisition aligns with the company’s strategy to tap into rapidly growing markets that complement its main business areas and strengthen its position in Australia’s pet food market.

By acquiring Prime100, Colgate-Palmolive ( CL ) will enhance its Hill’s Pet Nutrition division, gaining access to the thriving fresh pet food segment while reinforcing its portfolio of science-based, veterinarian-approved products.

“Prime100 is a strong, veterinarian-endorsed, premium-priced brand with distinctive positioning that fits well within our long-term pet nutrition growth strategy,” said Colgate Chairman, President and CEO Noel Wallace.

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“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.”

The transaction is set to be completed in the second quarter of 2025, pending regulatory approval in Australia. Colgate plans to fund the deal with a combination of debt and cash.

As of December 31, the company held $1.09 billion in cash and equivalents. The acquisition is not expected to significantly affect its diluted earnings per share in 2025.

Price Action: CL shares closed higher by 0.41% at $86.39 on Tuesday.

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