BUSINESS - PetMatrix to be Acquired by Spectrum Brands

Spectrum Brands Holdings, Inc. announced it has signed a definitive agreement to acquire privately owned PetMatrix, LLC, a leading and rapidly growing manufacturer and marketer of rawhide-free dog chews.

Financial terms of the accretive, all-cash transaction were not disclosed.

"PetMatrix will immediately strengthen our pet care portfolio with its well-established and growing brands catering to healthy alternative pet trends," Andreas Rouvé, Chief Executive Officer of Spectrum Brands Holdings, said in a release.

"We expect it to further solidify Spectrum Brands as a leader in the North American dog chews category and to provide compelling white space revenue opportunities in Europe, Latin America and Asia." 

Spectrum Brands products include Nature's Miracle, FURminator, Littermaid, Dingo, Tetra and Marineland.

Founded in 2008, PetMatrix provides a broad portfolio of innovative, rawhide-free dog chews across its two flagship brands – DreamBone® and SmartBones®.

PetMatrix products are sold to mass merchandisers, food and drug stores, and pet specialty stores and the company is on pace to achieve approximately $75 million in sales in calendar year 2017.

"The PetMatrix team and I are excited to join Spectrum Brands," said Mark Stern, founder and CEO of PetMatrix. "This partnership will bring additional resources to our company and allow us to execute our plans for continued growth in the coming years."

The acquisition, which has been approved by Spectrum Brands' Board of Directors, is expected to close by the end of May 2017.

Previous acquisitions by Spectrum Brands include the European business of Iams and Eukanuba, as well as Proctor & Gamble’s European pet care business.

Spectrum Brands Acquires European Business of Iams and Eukanuba

A business transaction occurred between Spectrum Brands Holdings Inc. and Procter & Gamble. Spectrum has acquired the European business of Iams and Eukanuba from Procter & Gamble. European Iams and Eukanuba have annual sales of approximately $200 million USD.

Dave Lumly, CEO of Spectrum Brands Holdings, said, “The addition of these leading brands in an adjacent category better balances the product portfolio of our global pet business while significantly expanding its product offerings and geographic footprint. We see major cross-selling opportunities given the strength of our existing aquatics and companion animal supplies business in continental Europe and the particularly strong position of these dry pet food brands in the UK. Over the next few years, we also expect important synergies in overhead, SG&A, and manufacturing and distribution.”

The Chairman of the Board of Spectrum Brands Holdings, David Maura said, “I view the Iams and Eukanuba brands as iconic in the specialty pet food category. With this acquisition, we are strategically strengthening our companion animal product portfolio and investing behind our global pet supplies business. We expect this deal to be accretive in year one, but more meaningfully so in the second year, once fully integrated. We welcome the P&G employees to the Spectrum Brands family and look forward to driving this business to an even higher performance level and providing outstanding service to our customers.”

READ THE ARTICLE

Spectrum Brands Buys P&G’s Remaining Pet Care Business

Spectrum Brands Acquires European Pet Care Business

Dateline: CINCINNATI

The Procter & Gamble Company (NYSE:PG) today announced last week, that Spectrum Brands has agreed to buy IAMS® and EUKANUBA® brands in Europe for an undisclosed amount.

In April, P&G announced the sale to Mars, Inc. of 80% of its global Pet Care business, including North America and Latin America. Europe was not included in that deal with the exception of Russia and Turkey. Mars later agreed to buy an additional 10% of the business in additional markets including Japan, Australia and South Africa. With the Spectrum transaction, P&G now has closed deals or reached agreements to sell 100% of its Pet Care business. The deal will close in 2015, subject to regulatory approvals.

P&G’s Chairman, President and Chief Executive Officer, A.G. Lafley, said: “Exiting Pet Care is an important step in our strategy to focus P&G’s portfolio on the core businesses where we can create the most value for consumers and shareowners. The transaction creates value for P&G shareowners, and we are confident that the European business will thrive at Spectrum, a leading company in pet care.” Spectrum has a strong Pet Care business with brands representing $600 million in global sales, including Tetra®, Furminator®, 8 in 1®, and Dingo®.

The geographic regions included in the acquisition, which account for approximately 10% of P&G’s former pet care global sales, include 42 markets throughout Europe.