Central Garden & Pet Acquires 80% of TRIXIE for €400M, Reports Q3 FY26 Revenue of $882M as Transformation Accelerates

Central Garden & Pet (NASDAQ: CENT) announced the acquisition of 80% of TRIXIE, Europe’s largest pet supplies company, for up to €400 million (€340M cash + €60M earn-out), while reporting Q3 FY2026 revenue of $882 million with organic growth of 2.4% and EPS of $1.45. The deal, expected to close in January or February 2027, transforms Central from a US-centric distribution-heavy operator into a transatlantic branded pet accessories wholesale powerhouse. CEO Niko Lahanas and CFO Brad Smith present to investors at a KeyBanc meeting on September 1, 2026.

Acquirer

Central Garden & Pet Company (NASDAQ: CENT, Walnut Creek, California)

Target

TRIXIE (German pet supplies company, ~600 employees, 6,000+ products, 30,000+ pet stores served internationally)

Deal Value

Up to €400M (€340M cash upfront + €60M earn-out)

Stake

80% of TRIXIE

Close Expected

January or February 2027 (subject to regulatory approval)

Q3 FY26 Revenue

$882M (-8% reported, +2.4% organic)

Q3 FY26 EPS

$1.45 (diluted)

Gross Margin

~36% (+130–140 bps YoY)

Full-Year FY26 EPS Guidance

$2.85+ (raised from $2.70+)

Stock YTD

+~40% (from ~$29 to ~$44)

CFO Investor Meeting

September 1, 2026 (KeyBanc)

What Happened

On July 28, 2026, Central Garden & Pet announced it would acquire 80% of TRIXIE for up to €400 million — €340 million in cash upfront and €60 million in earn-out payments contingent on performance. The deal, subject to regulatory approval, is expected to close in January or February 2027. TRIXIE is the largest pet supplies company in Europe, with approximately 600 employees, a portfolio of more than 6,000 products spanning dogs, cats, birds, reptiles, and small animals, and a distribution network serving over 30,000 pet stores internationally. Roughly 90% of TRIXIE’s sales come from its own-brand portfolio.

On August 5, 2026, Central reported its Q3 FY2026 results. Revenue came in at $882 million, down 8% on a reported basis but up 2.4% organically — the decline was driven by the divestiture of Central’s low-margin pet distribution business into a joint venture with Phillips Pet Food & Supplies (Central retained a 20% stake and ~$57M in net assets). Diluted EPS was $1.45, gross margin expanded approximately 130–140 basis points to ~36%, and operating margin improved 90 basis points to 15.4%. The company raised its full-year FY2026 EPS guidance to $2.85+ (from $2.70+).

Background

Central Garden & Pet has undergone a fundamental restructuring in 2026. The company historically operated three businesses — pet products, garden products, and a third “hidden in plain sight” pet distribution segment that moved boxes for other brands at thin margins. In spring 2026, Central divested this distribution business into a joint venture with Phillips Pet Food & Supplies, retaining a 20% stake and walking away with roughly $57 million in net assets.

The effect was immediately visible in quarterly results. In Q1 FY2026, when distribution was still partially on the books, revenue was $617 million and GAAP operating income was just $17 million. By Q2 FY2026, with distribution shifted, revenue jumped to $906 million and operating income reached $114 million. Q3 FY2026 held at $882 million in revenue with even stronger per-share results. The business became thinner on revenue and fatter on profit.

The transformation is not just about divestiture. Central’s “Cost and Simplicity” program has closed 16 legacy facilities over multiple years, while Project Horizon — a logistics modernization initiative — is now 95% complete, having closed 13 facilities. Operating cash flow hit a record $327 million, and the company’s cash position stands at $997 million with an approximately 11% free cash flow yield over the trailing twelve months.

Industry Context

The European pet supplies market is approximately €10 billion annually and growing at mid-single digits. Central Garden & Pet currently generates only about 10% of its sales outside the United States. The TRIXIE acquisition gives Central an immediate European beachhead — an existing logistics platform across the continent, a portfolio of 6,000+ own-brand products, and relationships with 30,000+ pet stores.

For the pet supplies wholesale and pet accessories wholesale channels, this deal reshapes the competitive landscape. TRIXIE’s product portfolio is particularly strong in pet accessories — toys, beds, containment, training aids, and habitat products. Critically, cat products account for 20–25% of TRIXIE’s business, filling a category gap that Central has historically lacked. The deal also creates a new competitive dynamic for European pet products supplier companies, as a US-based acquirer with deep capital resources enters the market with an established brand portfolio.

This acquisition also fits into the broader pet industry report 2026 trend of consolidation. CEO Niko Lahanas noted at a recent conference: “Deals beget deals.” Central has completed more than 60 acquisitions over 40 years and views M&A as the fastest way to alter competitive positioning. The TRIXIE deal is the largest in the company’s history.

Market & Business Impact

The market has responded enthusiastically to Central’s transformation. The stock has surged approximately 40% year-to-date, from below $29 at the start of 2026 to approximately $44 in late August. At 15.7x P/E, the valuation reflects optimism about TRIXIE’s growth potential but faces pressure if integration execution lags or European market dynamics underperform.

Analyst views are divided. Canaccord Genuity (Brian McNamara) maintains a buy rating with a $60 price target, citing the pet category stabilization and the strategic logic of the TRIXIE acquisition. JP Morgan (Andrea Faria Teixeira) maintains a sell rating with a $39 price target, citing valuation concerns and integration risk. This divergence — a $21 spread between bull and bear targets — reflects genuine uncertainty about whether TRIXIE’s synergies will materialize.

For the pet market report, the key metrics to watch post-close include: (1) same-store sales growth at TRIXIE’s European distribution network, (2) margin synergy realization from combined purchasing power, (3) cat category integration into Central’s US portfolio, and (4) whether Central leverages TRIXIE’s logistics platform to expand its existing US brands (Aqueon, Cadet, Kaytee, Nylabone, Four Paws) into Europe.

Companies & Brands Involved

• Central Garden & Pet (CENT) — NYSE-listed pet and garden products company. Pet segment brands include Aqueon, Cadet, Comfort Zone, Farnam, Four Paws, K&H Pet Products, Kaytee, Nylabone, and Zilla. CEO: Niko Lahanas. CFO: Brad Smith.
• TRIXIE — German pet supplies company, ~600 employees, 6,000+ products (dogs, cats, birds, reptiles, small animals), 30,000+ international pet store customers, ~90% own-brand portfolio. Cat products = 20–25% of sales.
• Phillips Pet Food & Supplies — JV partner that acquired Central’s divested pet distribution business. Central retained 20% stake.
• Canaccord Genuity — Analyst Brian McNamara, Buy rating, $60 target.
• JP Morgan — Analyst Andrea Faria Teixeira, Sell rating, $39 target.

Data & Evidence

TRIXIE Deal: €400M total (€340M cash + €60M earn-out) for 80% stake. Close expected Jan/Feb 2027. European pet supplies market ~€10B, growing mid-single digits.

What This Means

The TRIXIE acquisition is the largest transatlantic pet supplies M&A of 2026 and a defining moment for Central Garden & Pet. The deal transforms Central from a US-centric operator with thin-margin distribution drag into a transatlantic branded pet accessories wholesale powerhouse with European scale. For pet products supplier companies and pet supplies wholesale channels, the deal creates a new competitive dynamic — a US acquirer with €10 billion of European market opportunity and the capital to execute.

The September 1 KeyBanc investor meeting will be a critical inflection point. CFO Brad Smith is expected to address TRIXIE integration plans, synergy targets, and the trajectory of the branded pet business post-distribution divestiture. Watch for: (1) specific synergy guidance, (2) cat category cross-selling plans, (3) European logistics platform expansion timeline, and (4) whether Central’s existing US brands will be distributed through TRIXIE’s 30,000-store network.

The divergence in analyst targets ($60 buy vs $39 sell) reflects genuine uncertainty. The bull case rests on TRIXIE’s growth potential and synergy realization; the bear case cites integration risk, European market headwinds, and valuation at 15.7x P/E. The truth will emerge over the next 4–6 quarters as the deal closes and integration begins.

• Central Garden & Pet is acquiring 80% of TRIXIE — Europe’s largest pet supplies company — for up to €400M (€340M cash + €60M earn-out), closing Jan/Feb 2027.
• Q3 FY26 revenue was $882M (-8% reported, +2.4% organic); EPS $1.45; gross margin +130–140 bps; FY26 EPS guidance raised to $2.85+.
• The deal gives Central an immediate European beachhead: 6,000+ products, 30,000+ pet stores, ~90% own-brand, cat category exposure (20–25% of TRIXIE sales).
• Central divested its low-margin pet distribution business (JV with Phillips, 20% retained), shifting from distribution-heavy to branded, high-margin model.
• Stock +40% YTD; analyst targets diverge widely ($60 buy vs $39 sell) reflecting TRIXIE integration uncertainty.
• CFO Brad Smith presents at KeyBanc investor meeting September 1, 2026 — watch for synergy guidance and cat category cross-selling plans.

1. Primary — Central Garden & Pet Company, Q3 FY2026 10-Q filing and earnings release, August 5, 2026. SEC filing.
2. Primary — Central Garden & Pet Company, TRIXIE acquisition announcement, July 28, 2026.
3. Secondary — AInvest, “Central Garden & Pet: The TRIXIE Bet, and Whether the Stock Has Already Paid for It,” August 26, 2026. https://www.ainvest.com/news/central-garden-pet-trixie-bet-stock-paid-2608
4. Secondary — Investing.com, Central Garden & Pet (CENT) financials and analyst data, August 2026.
5. Secondary — Futunn, Central Garden & Pet (CENT) analyst ratings, August 2026.