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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