Posted: Dec. 6, 2011, 4:50 p.m. EST
Spectrum Brands Holdings Inc.’s Cincinnati, Ohio-based United Pet Group division signed a definitive agreement to acquire Furminator of Fenton, Mo., from HKW Capital Partners III L.P. and other shareholders, for $140 million cash, Spectrum reported today.
“With the significant synergies we expect to achieve with Furminator in the next 12 to 18 months, we believe the purchase price will result in a multiple paid in a range of six to seven times,” Spectrum CEO Dave Lumley said. “Furminator immediately expands and further strengthens UPG’s broad companion animal product portfolio through entry into the large and growing dog and cat grooming category. It also helps achieve our objective for more balance in UPG’s two-product segments of aquatics and companion animals.”
The global dog/cat grooming industry hauls in an estimated $200 million annually and grows at 3 percent to 4 percent per year, according to Spectrum. Founded in 2002, Furminator now generates revenues of $40 million through its two brands of grooming products: Furminator in the North American pet specialty channel and Furgopet in the North American mass market.
"This acquisition is an excellent fit with our stated strategy to pursue synergistic, bolt-on acquisitions that expand our product line with strong, complementary brands in growing categories, increase and extend our market penetration, and provide for manufacturing and distribution synergies," Lumley said. "The transaction is expected to be accretive, providing significant global growth opportunities and manufacturing, supply chain and distribution synergies, most notably leveraging our United Pet Group's unique global infrastructure to expand sales both internationally and domestically through our strong relationships with mass merchandisers and pet stores."
Spectrum expects the deal to close by the end of the year.<HOME>
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