Central Garden & Pet Acquires Pets International; Acquires Leading Brand in Small Animal and Specialty Pet Supplies; Strong History of Innovation and Market Leadership
WALNUT CREEK, Calif.--(BUSINESS WIRE)--June 2, 2005--Central Garden & Pet Company (Nasdaq:CENT) today announced that it has acquired Pets International, Ltd. for approximately $35 million, plus a potential earnout over the next seven months.
Based in Chicago, Illinois, Pets International is a leading supplier of innovative small animal and specialty pet supplies including homes, habitats, exercise toys, feeding devices, chews and other care and maintenance products marketed under the proprietary brand name "Super Pet(R)."
"This acquisition strengthens our leading portfolio of premium brands in the small animal category," said Glenn Novotny, President and Chief Executive Officer of Central Garden & Pet . "The addition of Pets International, combined with our Kaytee operations, enables us to offer a complete line of food, consumable supplies and other premium accessories that meet the needs of pet owners caring for pet rabbits, hamsters, ferrets, guinea pigs, gerbils, chinchillas, and other small pet animals and birds.
In 2004, Pets International's net sales were approximately $36 million. The transaction is consistent with Central's previously stated acquisition criteria of 5-to-7 times trailing 12 months operating income. Pets International is expected to add approximately 7 cents to 9 cents to Central's net earnings per share for the fiscal year ending September 2006. For 2005, the acquisition is expected to be earnings neutral due primarily to the expected increased inventory valuation in accordance with accounting for business combinations under generally accepted accounting principles.
"Pets International and its brand Super Pet(R) have a celebrated history of product innovation and leadership in the small animal and specialty pet category," concluded Mr. Novotny. "Bob Krause, Pets International founder and President, is a recognized leader and innovator in the specialty pet industry. We look forward to working with Bob and his experienced team to continue to develop innovative products to capture the hearts of pet enthusiasts worldwide."
"We are excited to join forces with Central Garden & Pet ," commented Mr. Krause. "Central's commitment to innovation, quality, service and people will enable Super Pet(R) to continue growing our market leadership position through new product development."
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, 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, decorative outdoor patio products and ant control 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, AMDRO, Grant's, Sevin, Over'n Out and Cedar Works. For additional information on Central Garden & Pet , including access to the Company's SEC filings, please visit the Company's website at http://www.centralgardenandpet.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.
CONTACT: Central Garden & Pet Paul Warburg, 925-948-3686 SOURCE: Central Garden & Pet
Released June 2, 2005