KAYTEE PRESS RELEASE DATED DECEMBER 8, 1997
Published on December 8, 1997
FOR IMMEDIATE RELEASE
- ---------------------
Contact: Gregory Reams
Central Garden & Pet
510/283-4573
Paul Verbinnen/Debbie Miller
Sard Verbinnen & Co
212/687-8080
CENTRAL GARDEN & PET TO ACQUIRE KAYTEE PRODUCTS
-----------------------------------------------
LAFAYETTE, CA DECEMBER 8, 1997 -- Central Garden & Pet Company (NASDAQ:
CENT) today announced that it has signed a letter of intent to acquire the stock
of Kaytee Products Incorporated, one of the nation's largest manufacturers of
bird and small animal food. Central expects to pay approximately $50 million in
cash plus an earn-out not to exceed $3 million. Management expects that
transaction to be accretive to Central earnings.
Based in Chilton, Wisconsin, Kaytee Products is the national leader in
specialty pet foods for birds and small animals as well as a major producer of
branded wild bird food. Brand names include Kaytee/R/ and Amazon Smythe/R/.
The business being acquired by Central reported annual sales of approximately
$103 million for the fiscal year ended June 30, 1997. Kaytee Products has
approximately 425 employees and manufacturing sites located in Chilton,
Wisconsin, Rialto, California, Cressona, Pennsylvania and Abilene, Kansas.
Kaytee Products' distribution business in Southern California, United Pacific
Pet, principally an Iams dog food distribution business, will be spun-off and
retained by the former stockholders of Kaytee Products.
Central Garden & Pet Company is the leading national distributor of lawn
and garden and pet supply products. Central offers customers a wide array of
value-added 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 Zodiac/R/ and Four Paws/R/ pet products, Island/R/ aquariums,
Matthews/R/ redwood products and Grant's/R/ ant control products.
Consummation of the transaction is subject to execution of a definitive
agreement and satisfaction of regulatory requirements and other customary
closing conditions.
"Safe Harbor" Statement under Private Securities Litigation Reform Act of
1995: The statements contained in this release which are not historical facts,
including statements relating to future financial results of the acquired
business, 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.
###