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 product offering."
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 retail partners."
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, visit www.belllabs.com.
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:
- Compliance 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;
- Increases in the prices of raw materials and fuel costs could adversely affect the Company's results of operations;
- The highly competitive nature of the Company's markets could adversely affect its ability to maintain or grow revenues;
- Because 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 financial results;
- Adverse weather conditions could adversely impact financial results;
- The Company's international operations make the Company susceptible to fluctuations in currency exchange rates and to other costs and risks associated with international regulation;
- The Company may not be able to adequately protect its intellectual property and other proprietary rights that are material to the Company's business;
- If 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;
- Hagedorn Partnership, L.P. beneficially owns approximately 30% of the Company's common shares and can significantly influence decisions that require the approval of shareholders;
- The 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.
Kimberly Green, Manager of Investor Relations, (937) 578-5107