PRESS RELEASE DATED MAY 26, 1997
Published on May 30, 1997
Exhibit 1.1
[LETTERHEAD OF CENTRAL GARDEN & PET]
FOR IMMEDIATE RELEASE
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Contact: Gregory Reams
Central Garden & Pet
510/283-4573
Paul Verbinnen/Debbie Miller
Sard Verbinnen & Co.
212/687-8080
CENTRAL GARDEN & PET COMPANY COMPLETES PREVIOUSLY ANNOUNCED
ACQUISITION OF SANDOZ AGRO FLEA AND TICK BUSINESS
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Modified Transaction Includes Additional Specialty Products
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LAFAYETTE, CALIFORNIA, MAY 26, 1997 -- Central Garden & Pet Company
(NASDAQ:CENT) the nation's leading distributor of lawn and garden and pet
supplies, today announced that it has completed its previously announced
acquisition of the United States and Canada flea and tick business of Sandoz
Agro, Inc. The acquisition, which has since been modified to include all
methoprene-based products produced by Sandoz for use in the United States and
Canada, and certain other specialty products, was announced in October 1996.
The acquisition includes ownership in the United States and Canada of the
Zodiac(R) and Vet-Kem(R) trademarks as well as those for Ovitrol(R),
Siphotrol(R), Fleatrol(TM), vIGRen(R), Petcor(R), Precor(R), and Natural
Signature(R). These products -- which include on-animal sprays, shampoos and
powders, collars, indoor foggers, aerosols, concentrates and pump-sprays -- are
based on the active ingredient Methoprene to which Central has acquired
exclusive rights in the United States and Canada. Central has also acquired a
manufacturing, formulation, packaging and research facility in Dallas, Texas and
all existing inventory, along with a staff of highly trained technical
professionals who are focused on the development and registration of new
products. The trademark vIGRen is the trademark used for the sale of technical
Methoprene to
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S.C. Johnson, Hartz Mountain, Monsanto and others for their use in branded
products for the consumer mass market.
In a related development announced in March of this year, Central will now
proceed with its joint development, marketing and distribution agreement with
Hoechst Roussel Vet. Under the agreement, Central will license exclusive U.S.
and Canadian sales and marketing rights for the Vet-Kem(R) line of flea and tick
products. Hoechst Roussel Vet and Central have also agreed to certain joint
development efforts. Central will retain exclusive rights to market any new
products arising from these efforts to the mass market.
"This strategic acquisition is consistent with our goal of significantly
increasing our presence in branded pet and lawn and garden products," said
William Brown, Chairman and Chief Executive Officer of Central Garden & Pet. "We
anticipate opportunities to grow the business by leveraging our national
distribution and logistics capabilities and by expanding into new
methoprene-based products."
Central Garden & Pet Company is the leading national distributor of lawn,
garden and pet supply products, and a major national distributor of pool
supplies. Central offers customers a wide array of services designed to increase
the sales and profitability of both manufacturers and retailers, including
inventory management, advertising and promotional programs, in-store design and
display assistance and sales program development. Central also offers lines of
proprietary branded products which include Four Paws(R) pet products, Island(R)
aquariums, Matthews(R) redwood products and Grant's(R) ant control products.
"Safe Harbor" Statement under the Securities Litigation Reform Act of 1995:
The statements contained in this release which are not historical facts 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.
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