WALNUT CREEK, Calif.– Central Garden & Pet Company announced that it has agreed to acquire the stock of Farnam Companies, Inc., for approximately $287 million, plus $4 million for the purchase of related real property.
Based in Phoenix, Ariz., Farnam has been a leader in the animal health care industry since 1946. The Farnam Pest Control Division was started back in 1990 when we the company saw an opportunity to provide a line of non-pesticide fly control products.
“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, 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.”
In its fiscal year ending November 30, 2005, Farnam generated net sales of approximately $160 million. The acquisition is expected to be earnings neutral for fiscal 2006. The transaction is expected to close in Central’s second fiscal quarter ending March 2006 and is subject to satisfaction of regulatory requirements and other customary closing conditions.
Charles Duff, Farnam’s Chairman of the Board, stated, “I am delighted that Central Garden will be acquiring 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.”
Etkin & Company, Incorporated initiated the transaction and acted as exclusive financial advisor to Farnam and the Farnam shareholders in the sale of the business.