Central Agrees to Buy Farnam
Central Garden & Pet Co. (Walnut Creek, Calif.) in January
agreed to purchase the stock of Farnam Cos. Inc. (Phoenix) for
approximately $287 million plus $4 million for the purchase
of related real property, strengthening the company’s
presence in the animal health care market.
The transaction was expected to be completed by March.
Farnam’s brand portfolio includes D-Worm, BioSpot and
Scratchex for household pets. In the fiscal year ending Nov.
30, 2005, Farnam generated net sales of approximately $160
million.
“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,”
said Glenn Novotny, Central’s 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.”
“I am delighted that Central Garden will be acquiring
Farnam,” said Charles Duff, chairman of the board for
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.”
“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,” said
Novotny. “It is one of the most trusted brands in the
animal health industry. 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.” [March 2006 PET AGE]
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