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United Petfood is set to acquire a dry pet food facility in Decatur, Arkansas, from Wellness Pet Company, expanding its North American production network to three plants once the deal is completed. Group Sales Director Koen Van Broeck says the company is building regional capacity to serve customers locally, while focusing European investment on wet food, treats and localized production.
United Petfood has agreed to acquire a dry pet food plant in Decatur, Arkansas, from Wellness Pet Company, a move that would give the Belgian private-label manufacturer three production sites in North America once completed. The deal is part of a regional expansion strategy aimed at increasing local supply and reducing reliance on shipments from Europe, Group Sales Director Koen Van Broeck told GlobalPETS.
The planned acquisition follows United Petfood’s purchase of a facility in Drummondville, Quebec, in April. The company said the Arkansas deal is its fourth investment of the year. Together, the two North American acquisitions would take its regional footprint from one plant to three in less than six months, subject to completion of the Decatur transaction.
The companies also signed a long-term supply agreement alongside the facility deal. According to the report, Wellness Pet Company will continue supplying and distributing its products, so the change in ownership of the physical plant is not expected to interrupt those arrangements. The source did not provide the agreement’s terms or the acquisition price.
Van Broeck said the regional network is intended to support existing customers and attract new ones. United Petfood sees scope to expand its work with current clients through added supply options and products, while also developing products with startups and other businesses that do not yet use the manufacturer. Its customers include specialty and grocery retailers.
A Local Network for North America
More manufacturing capacity in the region could give United Petfood a stronger base from which to serve North American customers. Van Broeck said local production can reduce logistics costs and complexity and make the company less dependent on material coming from Europe. The acquisition may also add supply options for customers, although the company has not disclosed output volumes or specific cost savings.
The focus on dry food reflects the company’s view of regional demand. The GlobalPETS report cited a Yummypets survey of 1,000 North American pet owners: diets consisting only of kibble were preferred by 44% of Canadian respondents and 32% of US respondents. In the United States, 63.5% reported feeding a mix of dry and wet food. These survey figures describe reported preferences, not the share of total sales or a forecast of future demand.
The investment also fits a broader private-label strategy. United Petfood is seeking to support customer assortments across price points and product types, while the report says the company sees a shift away from mid-tier products toward both lower-priced and premium or super-premium options. That pattern creates opportunities for contract manufacturers, but premium ingredients and formats can raise production costs.
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Investment Shifts by Region
United Petfood’s North American expansion is focused on dry pet food, while its European investments are directed more toward wet food, treats and production closer to local markets. Van Broeck said wet food and treats are taking a larger share of the company’s output. He pointed to demand for hydration in cat nutrition and investment in formats such as single-serve pouches and cans.
The company has also made moves beyond North America. In March, it bought a dry pet food factory in Turkey in partnership with Turkish producer Lider Pet Food. In August, it acquired a 50% stake in German producer SmartPetPro, strengthening its premium wet-food offering and customer base in the region. Van Broeck described Germany as a previous gap in the company’s European coverage; the report says the German investment is intended to improve access to that market.
United Petfood is also tracking demand for functional pet foods and products associated with health and longevity. Van Broeck said the company works with partners and customers to develop concepts in health and wellbeing, including as pets acquired during the COVID-era surge grow older. These are areas the company is watching and developing with partners, rather than confirmed product launches detailed in the report.
“It’s very important to be present in this large market.”
— Koen Van Broeck, United Petfood group sales director, speaking to GlobalPETS
Deal Terms and Capacity Still Unknown
The report does not state when the Arkansas acquisition will close, what United Petfood paid, or the plant’s production capacity. It also does not detail whether the facility will undergo changes to its workforce, product mix or operating arrangements after completion. The long-term supply agreement is described as protecting continuity for Wellness Pet Company’s products, but its duration and other terms were not disclosed.
United Petfood’s plans to add regional scale are clear, but the report does not quantify expected logistics savings, customer commitments or how much additional production the three-plant network will deliver. The company’s broader acquisition strategy is also not fully set out in the available report.
Completion and Customer Integration
The next stated milestone is completion of the Decatur acquisition. Until then, the plan to operate three North American plants remains conditional. The parties’ supply agreement is intended to keep Wellness Pet Company product supply and distribution running through the change in ownership, according to the report.
After completion, the practical test will be how United Petfood integrates the facility into its regional network and uses the capacity for existing and prospective customers. The company has not announced a timetable for operational changes, additional North American investments or specific new products tied to the Arkansas plant.
Key Questions
What is United Petfood acquiring?
United Petfood has agreed to acquire a dry pet food production facility in Decatur, Arkansas, from Wellness Pet Company. The report does not give the purchase price or expected closing date.
How many North American plants would United Petfood have?
Once the Arkansas acquisition is completed, United Petfood’s North American production footprint would total three plants. It acquired a facility in Drummondville, Quebec, in April.
Will the deal interrupt Wellness Pet Company’s supply?
The companies signed a long-term supply agreement alongside the facility transaction. The report says this arrangement is intended to keep Wellness Pet Company’s product supply and distribution uninterrupted; the agreement’s terms were not disclosed.
Why is United Petfood expanding in North America?
Group Sales Director Koen Van Broeck said local manufacturing can reduce logistics costs and complexity and lessen reliance on material shipped from Europe. The company also aims to serve current customers and develop business with new clients.
What is United Petfood investing in outside North America?
The company’s European investments are focused more on wet food, treats and localized production. The report also describes moves in Turkey and Germany, alongside the company’s work with customers on functional and health-related product concepts.
Source: rss
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