ScottsMiracle-Gro Expands Controls Category with Purchase of Tomcat Consumer
MARYSVILLE, Ohio, Oct. 14, 2013
MARYSVILLE, Ohio, Oct. 14, 2013 /PRNewswire-FirstCall/ --The Scotts
Miracle-Gro Company (NYSE: SMG), the world's leading marketer of branded
consumer lawn and garden products, today announced that it has reached an
agreement with Bell Laboratories, Inc., the world's leader in rodent control
technology, to acquire the Tomcat® consumer rodent control business.
The acquisition includes the Tomcat brand, as well as a long-term partnership
to bring innovative technologies to the consumer rodent control market.Tomcat
consumer products are sold at home centers and mass retailers, as well as
grocery, drug and general merchandise stores across the U.S. and Canada, in
addition to Europe and Australia/New Zealand.
"This transaction is consistent with the strategic direction we have
articulated," said Jim Hagedorn, chairman and chief executive officer."It is
complementary to our existing controls business and fills a gap in our current
Terms of the transaction are not being disclosed.The integration of the
Tomcat consumer business is expected to be accretive to ScottsMiracle-Gro's
operating margin beginning in fiscal 2014.
"Consumer rodent control is an attractive and growing category in which a vast
number of our consumers already participate," said Barry Sanders, president
and chief operating officer."While our limited-line of Ortho Home Defense
rodent control products have brought innovation to the category since 2009,
the addition of the Tomcat consumer business allows us to significantly expand
our global commercial footprint.With a strong consumer brand and full line of
rodent control products we are better able to serve both our consumers and our
The acquisition positions ScottsMiracle-Gro as a leading marketer of consumer
rodent control products.In addition to research and development, Bell
Laboratories, Inc. will continue to perform regulatory and manufacturing
functions for the Tomcat brand.
With more than $2.8 billion in worldwide sales, The Scotts Miracle-Gro
Company, through its wholly-owned subsidiary, The Scotts Company LLC, is the
world's largest marketer of branded consumer products for lawn and garden
care. The Company's brands are the most recognized in the industry. In the
U.S., the Company's Scotts®, Miracle-Gro® and Ortho® brands are market-leading
in their categories, as is the consumer Roundup® brand, which is marketed in
North America and most of Europe exclusively by Scotts and owned by Monsanto.
In the U.S., we operate Scotts LawnService®, the second largest residential
lawn care service business. In Europe, the Company's brands include Weedol®,
Pathclear®, Evergreen®, Levington®, Miracle-Gro®, KB®, Fertiligene® and
Substral®. For additional information, visit www.scotts.com.
About Bell Laboratories, Inc.
An exclusive manufacturer of rodent control products, Bell Laboratories, Inc.
produces the highest quality rodenticides and other rodent control products
available to the pest control and agricultural industries on six
continents.Bell Laboratories, Inc. has developed a complete line of products
- rodenticides, tamper-resistant bait stations, non-poisonous glue boards,
mechanical traps and attractants - to control rodents in any situation.Bell
Laboratories, Inc. works to foster an environment of corporate responsibility
in all areas of its business.Through its environmental efforts, product
solutions and island conservation practices, Bell Laboratories, Inc. strives
to create sustainable practices wherever possible.For additional information,
Cautionary Note Regarding Forward-Looking Statements
Statements contained in this press release, other than statements of
historical fact, which address activities, events and developments that the
Company expects or anticipates will or may occur in the future, including, but
not limited to, information regarding the future economic performance and
financial condition of the Company, the plans and objectives of the Company's
management, and the Company's assumptions regarding such performance and plans
are "forward-looking statements" within the meaning of the U.S. federal
securities laws that are subject to risks and uncertainties. These
forward-looking statements generally can be identified as statements that
include phrases such as "guidance," "outlook," "projected," "believe,"
"target," "predict," "estimate," "forecast," "strategy," "may," "goal,"
"expect," "anticipate," "intend," "plan," "foresee," "likely," "will,"
"should" or other similar words or phrases. Actual results could differ
materially from the forward-looking information in this release due to a
variety of factors, including, but not limited to:
oCompliance with environmental and other public health regulations could
increase the Company's costs of doing business or limit the Company's
ability to market all of its products;
oIncreases in the prices of raw materials and fuel costs could adversely
affect the Company's results of operations;
oThe highly competitive nature of the Company's markets could adversely
affect its ability to maintain or grow revenues;
oBecause of the concentration of the Company's sales to a small number of
retail customers, the loss of one or more of, or significant reduction in
orders from, its top customers could adversely affect the Company's
oAdverse weather conditions could adversely impact financial results;
oThe Company's international operations make the Company susceptible to
fluctuations in currency exchange rates and to other costs and risks
associated with international regulation;
oThe Company may not be able to adequately protect its intellectual
property and other proprietary rights that are material to the Company's
oIf Monsanto Company were to terminate the Marketing Agreement for consumer
Roundup products, the Company would lose a substantial source of future
earnings and overhead expense absorption;
oHagedorn Partnership, L.P. beneficially owns approximately 30% of the
Company's common shares and can significantly influence decisions that
require the approval of shareholders;
oThe Company may pursue acquisitions, dispositions, investments, dividends,
share repurchases and/or other corporate transactions that it believes
will maximize equity returns of its shareholders but may involve risks,
such as risks of integration of acquired businesses, the possibility that
anticipated synergies from strategic acquisitions may not materialize, and
the risk that sales of acquired products may not meet expectations.
Additional detailed information concerning a number of the important factors
that could cause actual results to differ materially from the forward-looking
information contained in this release is readily available in the Company's
publicly filed quarterly, annual and other reports. The Company disclaims any
obligation to update developments of these risk factors or to announce
publicly any revision to any of the forward-looking statements contained in
this release, or to make corrections to reflect future events or developments.
Contact: Kimberly Green, Manager of Investor Relations, (937) 578-5107
Press spacebar to pause and continue. Press esc to stop.