CG&P turns its back on bid proposals
Walnut Creek, California-based Central Garden & Pet said it rebuffed acquisition offers from an investment group.
The marketer and producer of products for the lawn and garden and pet supplies markets, said that, after an extensive review, its board of directors unanimously concluded that it will not pursue two proposals received from Harbinger Group Inc. in June to acquire all of Central’s common stock at $10 per share in cash or, alternatively, to acquire the company's pet segment for $750 million in cash.
Walnut Creek, California-based Central Garden & Pet said it rebuffed acquisition offers from an investment group.
The marketer and producer of products for the lawn and garden and pet supplies markets, said that, after an extensive review, its board of directors unanimously concluded that it will not pursue two proposals received from Harbinger Group Inc. in June to acquire all of Central’s common stock at $10 per share in cash or, alternatively, to acquire the company's pet segment for $750 million in cash.
“While we appreciate Harbinger’s interest in Central, we believe the proposals do not reflect Central’s future growth opportunities or the value we expect to deliver to our shareholders in the coming years,” said John Ranelli, president and CEO of Central. “Our board and management believe that Central is taking the right steps to improve our business and generate superior revenue and profitability growth. We are confident that these initiatives will secure our position as a leader in our marketplace and build value for our shareholders.”
The board was assisted in its review by Lazard as financial adviser and Cravath, Swaine & Moore as legal adviser.
In its most recent quarter, the company posted sales of $438 million, an 11% sales decline. Net income was $4.7 million, down from $13.7 million.
