Central Garden & Pet's (CENT) TDBBS Buyout to Fuel Growth

Central Garden & Pet Co. CENT has made a significant stride to strengthen its foothold in the pet industry. The company recently announced its acquisition of TDBBS, LLC, a premium natural dog chew and treat provider based in Richmond, VA. This move is set to have far-reaching implications for CENT's position in the pet industry and its growing digital capabilities.

Delving Deeper Into the Acquisition

This strategic move is not merely an expansion of Central Garden & Pet's product portfolio; it represents a significant leap toward a comprehensive pet-care approach. With the incorporation of TDBBS, the company is poised to introduce an array of exciting offerings, including bully and collagen sticks, bones and jerky, while simultaneously reinforcing its presence in the digital landscape.

Central Garden & Pet's overarching strategy, known as "Central to Home," is centered on increasing its influence in the Pet and Garden industries and nurturing beloved consumer brands. With the addition of TDBBS, the company is set to solidify its position in the rapidly expanding dog treats and chews category, while enhancing its engagement with key customers.

The transaction was completed on Nov 3, 2023. The company plans to provide additional details about this acquisition during its fourth-quarter and fiscal 2023-endearnings call which is scheduled for later in November.

 

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Here’s What Sets TDBBS Apart

TDBBS has been a key player in the industry since 2008, specializing in minimally processed dog treats and chews. With three well-known brands — Best Bully Sticks, Barkworthies, and Paw Love — TDBBS offers a wide range of natural, grain-free and gluten-free products. These treats are not only delicious but also promote the overall health of dogs as they are low in fat and high in protein, made from limited ingredients, and keep dogs engaged and happy.

Furthermore, TDBBS is a pioneer in eCommerce, having been founded as a digitally native brand with a first-mover advantage. Its brands and websites have emerged as synonymous with the bully stick category. TDBBS efficiently markets its products through direct-to-consumer online channels and third-party platforms. Additionally, its products are available through pet specialty stores, select grocery outlets, mass retailers and club retailers.

Wrapping Up

This strategic acquisition emphasizes Central Garden & Pet's commitment to expanding its influence in the pet industry, focusing on products that not only cater to pets' needs but also align with the preferences of modern consumers.

The company has successfully completed more than 60 acquisitions since 1992. CENT's acquisition strategy aims to bolster its portfolio, manufacturing capabilities, leverage operational synergies, expand its distribution network, and enhance its digital and e-commerce capabilities.

In the past six months, shares of this Zacks Rank #2 (Buy) company have rallied 19.3% against the industry’s decline of 46.6%.

Bet Your Bucks on These Hot Stocks

A few other top-ranked stocks in the same sector are Build-A-Bear Workshop BBW, Walmart Inc. WMT and Trupanion, Inc. TRUP.

Build-A-Bear Workshop is the leading and only national company providing a make-your-own stuffed animal interactive retail-entertainment experience. The company currently carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

The Zacks Consensus Estimate for Build-A-Bear Workshop’s current fiscal-year earnings and sales indicates growth of 16.9% and 6.2%, respectively, from the year-ago period’s reported figures. BBW has a trailing four-quarter average earnings surprise of 21.6%.

Walmart has evolved from just being a traditional brick-and-mortar retailer into an omnichannel player. It currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Walmart’s current fiscal-year earnings and sales indicates growth of 2.4% and 5%, respectively, from the year-ago period’s reported figures. WMT has a trailing four-quarter average earnings surprise of 11.6%.

Trupanion operates as a direct-to-consumer monthly subscription service provider of a medical insurance plan for cats and dogs. The company currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Trupanion’s current financial-year sales indicates growth of 20.1% from the year-ago period’s reported figure. TRUP has a negative trailing four-quarter average earnings surprise of 20%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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