Central Garden & Pet Agrees to Acquire Breeder's Choice Pet Foods Inc.; Leading Brands in Premium Food Category for Dogs and Cat
February 23 2006 - 7:00AM
Business Wire
Central Garden & Pet Company (NASDAQ:CENT) today announced that
it has agreed to acquire the assets of Breeder's Choice Pet Foods
Inc., for approximately $25 million. Family owned since 1947 and
based in Irwindale, California, Breeder's Choice is a leading
branded marketer and manufacturer of premium all natural, healthy
dog and cat food sold exclusively in the pet specialty channel
under the brands AvoDerm(R), Pinnacle(R), Active Care(R) and
Advanced Pet Diets(R). "The acquisition of Breeder's Choice
complements our animal health and nutrition strategy," noted Glenn
Novotny, President and Chief Executive Officer of Central Garden
& Pet. "Breeder's Choice premium and super premium pet foods
are formulated for dogs and cats to promote longer and healthier
lives with all natural and nutritious ingredients. Breeder's
specialty foods also include skin and coat formulas, holistic and
allergen-free formulas and hip and joint formulas." In 2005,
Breeder's Choice generated net sales of approximately $30 million.
The acquisition is expected to contribute approximately 2 cents per
fully diluted share to earnings for fiscal 2006. The acquisition is
within Central's previously stated acquisition criteria of 5-to-7
times trailing operating earnings. "Breeder's Choice has long been
an industry leader developing innovative, natural, high quality
food and nutrition products for dogs and cats and strategically
fits within our stated 'String of Pearls' acquisition criteria,"
concluded Mr. Novotny. "With Breeder's Choice, together with our
Nylabone and Wellmark brands, and the pending Farnam acquisition,
we are building a leading portfolio of products that promote health
and improved life expectancy for companion animals. We are
delighted to have Rick Taylor, CEO of Breeder's Choice, and his
team of dedicated employees join the Central Garden & Pet
family of companies and drive Breeder's Choice to new levels of
success." 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.
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