CENT Strengthens Animal Health Portfolio With Champion USA Acquisition

Core Insights - Central Garden & Pet (CENT) has expanded its animal health platform by acquiring the U.S. assets of Champion USA, enhancing its presence in the livestock segment and adding the JustiFLY product line to its Professional business unit [1][8] Company Overview - Champion USA has over 15 years of experience in providing EPA-approved, residue-free fly-control solutions, having served over 300,000 producers and treated more than 50 million head of cattle globally, indicating a strong market presence [2] - The acquisition is expected to enhance CENT's growth profile by leveraging Champion's established relationships and brand equity alongside CENT's distribution network and innovation capabilities [3][6] Market Dynamics - Livestock fly control is identified as one of the fastest-growing areas within animal health, driven by increasing demand for sustainable and cost-effective herd management solutions [3] - CENT's animal health business was already showing strong momentum in Q4 of fiscal 2025, with solid growth across its Professional portfolio and equine categories, providing a favorable backdrop for the integration of Champion USA [4] Operational Strategy - Operational continuity is prioritized, with Champion USA's employees transitioning into CENT's Professional segment to ensure consistent product quality and customer service [5] - The acquisition aligns with CENT's long-term strategy of expanding differentiated, high-quality animal health offerings, positioning the company for steady, profitable growth [6] Financial Performance - CENT shares have declined 6.3% over the past three months, while the industry has seen a minor decline of 0.3% [7] - CENT trades at a forward price-to-earnings ratio of 12.08X, which is lower than the industry's average of 15.94X, indicating a potentially attractive valuation [7]