United Industries to Acquire Nu-Gro

The Nu-Gro Corporation has announced a definitive agreement under which United Industries Corporation, operator of Spectrum Brands, will acquire Nu-Gro.

Pursuant to the terms of the agreement, United Industries will pay C$11 per share or approximately C$192 million. Nu-Gro also plans to declare a special dividend of C$0.12 per share to be paid prior to completion of the acquisition.

The combined companies will have sales of approximately C$1.0 billion with nearly 1,800 employees in the United States and Canada. The transaction will combine two leading providers of consumer lawn care and garden products and insect control products in North America. United Industries is a manufacturer and marketer of products for the consumer lawn and garden care and insect control markets in the United States. Nu-Gro is a Canadian manufacturer and seller of packaged consumer and commercial lawn and garden products. Through its subsidiaries in Canada and the United States, Nu-Gro produces and distributes controlled release nitrogen raw material to the fertilizer industry worldwide.

“We chose Spectrum as a partner because it provides a broad geographic marketing platform with remarkably little overlap in products, facilities or distribution channels,” says John Hill, president and CEO of Nu-Gro “Spectrum chose us as a partner because of our strengths in our Canadian domestic market and our leadership position in the global controlled release nitrogen products market. It’s a great match.”

Specifically, the transaction broadens Spectrum’s geographic reach across North America while providing access to the professional lawn and garden care market in the region, notes Bob Caulk, chairman and CEO of Spectrum. The deal also offers access to the global market for controlled release nitrogen raw materials and products along with Nu-Gro’s product technology for use in the company’s U.S.-based business.