United Industries Completes Acquisition of Nu-Gro

ST. LOUIS - United Industries Corp., which goes to market as Spectrum Brands, announced that it has closed its previously announced acquisition of The Nu-Gro Corp., Canada's leading manufacturer and marketer of packaged lawn and garden products and a leading global supplier of controlled release nitrogen and other fertilizer technologies. The transaction creates a company with approximately $750 million in pro forma net sales.

Bob Caulk, United Industries' Chairman and CEO, said, "The Nu-Gro transaction allows us to expand our geography to reach consumers across North America with leading value brands. The combined company will continue to add value to our relationships with retailers across North America, from leading home centers and mass merchandisers to independent nurseries and garden centers, by identifying best practices in marketing, technology deployment and customer service." He added, "We will continue to pursue our strategy of driving organic growth from innovative product development combined with industry-leading technology to add value to our relationships with consumers and retail customers. We will also continue to assess certain strategic and value-enhancing acquisitions to drive our growth in core categories."

Caulk pointed to three immediate positive impacts of the transaction:

-- Advanced fertilizer technology and product development. Nu-Gro's proprietary fertilizer technology, which includes the most diverse portfolio of controlled release nitrogen technologies in the industry, allows Spectrum Brands to offer retail customers new and differentiated products without having to rely on third party suppliers.

-- Broader North American presence. Nu-Gro is the #1 supplier of consumer lawn and garden products in Canada as well as the #2 supplier there of household insecticides. As a result, Spectrum Brands has solidified its position as one of the top two suppliers in both segments in North America.

-- Vertical integration. The transaction gives Spectrum Brands the #1 position in the Canadian professional turf market selling to golf courses and lawn care operators and makes it the largest merchant manufacturer of controlled release nitrogen technology in North America. The addition of Nu-Gro's fertilizer technology business positions Spectrum Brands as a more vertically integrated fertilizer manufacturer and marketer, from raw material manufacturing to consumer take away.

Nu-Gro CEO John Hill sees incredible value in the combination. "For some time, I have believed that a greater North American presence would enhance our competitive position in consumer segments while expanding opportunities for our professional and raw material businesses," Hill said. "The transaction with Spectrum Brands is a wonderful marriage of consumer marketing, technology, customer development and culture." Hill and members of the Nu-Gro management team will join Spectrum Brands providing important continuity with customers and in fertilizer technology market development.