12.06.11
Spectrum Brands Holdings’s United Pet Group (UPG) division has signed a definitive agreement to acquire FURminator, a leading worldwide provider of branded and patented deshedding products to the pet industry, from HKW Capital Partners III, L.P. and the other shareholders for $140 million cash.
The global dog/cat grooming category is estimated at $200 million annually and is growing 3-4 percent per year, said Spectrum. The category consists of products such as deshedders, shampoos, combs/rakes, brushes, electric trimmers and nail trimmers.
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“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 the range of just 6 to 7 times,” said Dave Lumley, CEO of Spectrum Brands Holdings. “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.”
Founded in 2002 and with annual revenues of nearly $40 million, FURminator markets professional quality dog and cat products for the worldwide grooming tools and accessories category. FURminator offers a broad line of precision-designed deshedding tools for every pet size and hair length to deliver faster and more efficient dog and cat deshedding. FURminator’s patented products provide a solution to a significant pet owner problem -- shedding -- for some 120 million dog/cat-owning households in the U.S. and Europe.
FURminator sells high quality consumer products using two brands: FURminator in the North American pet channel and internationally and FurGOpet in the North American mass merchandise channel.
“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.”
The acquisition, which has been approved by Spectrum Brands’ Board of Directors, is expected to close by the end of 2011, and is subject to customary closing conditions.