Central Garden and Pet (NASDAQ:CENT)
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Central Garden & Pet Company (NASDAQ:CENT):
-- Leading Branded Product Supplier in Equine Care Marketplace
-- Forms Animal Health Strategic Business Unit
-- Strengthens Animal Health Product Portfolio and Development
Capabilities
Central Garden & Pet Company (NASDAQ:CENT) today announced that it
has agreed to acquire the stock of Farnam Companies, Inc., for
approximately $287 million, plus $4 million for the purchase of
related real property.
Based in Phoenix, Arizona, Farnam is a leading manufacturer and
marketer of innovative health care products primarily for horses,
household pets and livestock sold through over-the-counter and
veterinary channels. In addition to the internationally recognized
Farnam umbrella brand, Farnam's portfolio of industry leading brands
includes Equicare(R), ComboCare(TM), IverCare(TM), Endure(R), and
Repel-X(R) for horses; D-Worm(TM), BioSpot(R) and Scratchex(R) for
household pets; and Adams(TM) and Bite Free(TM) insect controls for
home and yard care.
"The strategic acquisition of Farnam and its extensive portfolio
of highly efficacious animal health care products propels Central into
the leadership position in the equine marketplace, and provides us
with a significantly stronger presence in the broader animal health
care industry," noted Glenn Novotny, President and Chief Executive
Officer. "Farnam and Wellmark International, Central's wholly owned
subsidiary, will combine to form a new, industry leading animal health
strategic business unit. The mission of the new strategic business
unit is to launch new, innovative products that, we believe, will
further enhance our leadership position in active ingredient based
products and technologies for animal health."
In its fiscal year ending November 30, 2005, Farnam generated net
sales of approximately $160 million. The acquisition is expected to be
earnings neutral for fiscal 2006. The transaction is expected to close
in Central's second fiscal quarter ending March 2006 and is subject to
satisfaction of regulatory requirements and other customary closing
conditions.
Charles Duff, Farnam's Chairman of the Board, stated, "I am
delighted that Central Garden will be acquiring Farnam. Central's
markets, business operations and corporate culture are very compatible
with those of Farnam, and we foresee a fast, seamless integration
producing significant economic benefits for the combined companies.
Equally important, we anticipate that the combination of these two
fine companies will provide significant benefits to consumers and
exciting opportunities for our channel partners in the future."
Etkin & Company, Incorporated initiated the transaction and acted
as exclusive financial advisor to Farnam and the Farnam shareholders
in the sale of the business.
"For 60 years, consumers and animal health professionals alike
have relied on Farnam for quality, innovative products to help care
for their horses and household pets. It is one of the most trusted
brands in the animal health industry," concluded Mr. Novotny. "We look
forward to working with the experienced Farnam management team to
develop the next generation of animal health products to further
enrich the bond between consumers and their animals."
A conference call has been scheduled for 8:45 a.m. Eastern Time on
Friday, January 20, 2006, to discuss this acquisition in more detail.
Individuals can access the call by dialing 1-866-543-6408 and
passcode 470 37 734. Those individuals calling from outside the United
States should dial 617-213-8899 and passcode 470 37 734.
Central Garden & Pet's conference call will be simultaneously
broadcast over the Internet through Central's website,
http://www.central.com. To listen to the webcast, please log on to the
website prior to the scheduled call time to register and download any
necessary audio software.
Re-play dial-in numbers for the call will be available for three
weeks: 1-888-286-8010 and passcode 724 94 874 (domestic) and
617-801-6888 and passcode 724 94 874 (international).
Central Garden & Pet Company is a leading innovator, marketer and
producer of quality branded products for the pet and lawn and garden
supplies markets. Our pet products include pet bird and small animal
food, aquarium products, flea, tick, mosquito and other pest control
products, edible bones, cages, carriers, pet books, and other dog,
cat, reptile and small animal products. These products are sold under
a number of brand names, including Kaytee, SuperPet, All-Glass
Aquarium, Oceanic, Kent Marine, Energy Savers Unlimited, Zodiac,
Pre-Strike, Altosid, Nylabone, TFH, Four Paws and Interpet. Our lawn
and garden products include grass seed, wild bird food, weed and
insect control products, and decorative outdoor patio products. These
products are sold under a number of brand names, including Pennington,
Norcal Pottery, New England Pottery, GKI/Bethlehem Lighting, Lilly
Miller, Matthews Four Seasons, Cedar Works, AMDRO, Grant's, Sevin and
Over'n Out. For additional information on Central Garden & Pet,
including access to the Company's SEC filings, please visit the
Company's website at http://www.central.com/.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: The statements contained in this release which are
not historical facts, including future earnings guidance, are
forward-looking statements that are subject to risks and uncertainties
that could cause actual results to differ materially from those set
forth in or implied by forward-looking statements. These risks are
described in the Company's Securities and Exchange Commission filings.
Central undertakes no obligation to publicly update these
forward-looking statements to reflect new information, subsequent
events or otherwise.