Dan Loeb’s Third Point builds stake in Colgate, sees value in pet food business in potential spinoff
Daniel Loeb
Simon Dawson | Bloomberg | beautiful pictures
Dan Loeb’s Third Point has built up a substantial stake in the massive consumer company Colgate-Palmoliveaccording to CNBC’s David Faber.
Loeb sees potential value in Colgate’s Hill’s Pet Nutrition subsidiary, a pet food company, should it be spun off.
According to sources, investors believe that as a stand-alone business, Hill’s can deliver faster growth and better profits, and could achieve a valuation of close to $20 billion across the board. numbers in 2023.
Colgate has been investing behind the pet food business, its fastest growing unit. Hill’s has always advertised itself as backed by “science”, which from a brand perspective is considered a trend.
The activist and hedge fund manager added that consolidation in the consumer health sector presents more opportunities for Colgate. Loeb said Colgate could become part of the current “minuet” M&A in the consumer health sector.
Colgate shares were up nearly 3% on Tuesday. Shares are still down about 15% this year.
