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Central Garden & Pet Acquires Segrest for $60 Million
Central Garden & Pet Company (CENT - Free Report) , the marketer and producer of premium lawn & garden and pet supplies products, recently announced the buyout of Segrest Inc. for $60 million in cash. The acquisition is likely to firm Central Garden & Pet’s footprint in the aquatics category.
Segrest is a major wholesaler of ornamental fish. It offers high quality tropical and coldwater aquarium fish, marine corals and live rock, saltwater specimens, aquatic plants and amphibians.
The company had earlier acquired the pet bedding business and certain other assets from National Consumers Outdoors Corp. (previously known as Dallas Manufacturing Company) for $61 million. According to the company, bedding, which is one of the leading categories in dog and cat supplies, is gaining at a vigorous rate.
We note that Central Garden & Pet is revamping both its Pet and Garden segments. The company intends to have a balanced approach that encompasses revenue growth as well as cost reduction. It also aims to launch several products that will appeal to customers in addition to upgrading its customer service. Management expects the ongoing transformation efforts to yield results in the near future. The company plans to gain market share in the home centers, mass market, grocery, specialty pet store and other independent channels.
Central Garden & Pet has developed healthy commercial relationships with retail giants like Wal-Mart Stores Inc. (WMT - Free Report) , The Home Depot, Inc. (HD - Free Report) and Lowe's Companies, Inc. (LOW - Free Report) . We believe this provides the company with significant opportunity to drive growth.
CENTRAL GARDEN Price
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Central Garden & Pet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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