Printer Friendly

Harbinger announces offer to buy Central Garden & Pet Co.

MANews-(C)2009-2014

23 June 2014 - US holding company Harbinger Group Inc (NYSE:HRG) on Monday announced an offer to buy lawn and pet supplies group Central Garden & Pet Co (NASDAQ:CENT) at USD10.00 (EUR7.36) a share in cash, or alternatively to buy the company's pet business for USD750m in cash.

In a public letter, Harbinger's CEO Philip A Falcone addressed CENT's board with a renewed request to enter negotiations over a deal, saying Harbinger could raise the value of its proposals if granted access to conduct due diligence.

Falcone said he made the letter public after his previous one from 9 June and subsequent attempts to contact CENT's board went unanswered.

The USD10.00 per share proposal represents a premium of 27.5% to CENT's closing on 6 June, the last trading day before Harbinger published its first letter to CENT.

A minority CENT shareholder, Harbinger urged the CENT board to put together a special committee and engage advisors to consider a deal. Apart from leaving the door open for an increased offer, Harbinger also said it would allow CENT, after an agreement is signed, to check the market for potentially higher offers.

The suitor sees either of the proposed transactions as a great opportunity for CENT's shareholders to realise the company's value, it said.

The Wall Street Journal reported earlier citing an insider that Harbinger could announce today an unsolicited takeover bid worth some USD1.1bn, or USD10.00 ashare for CENT. The WSJ said on Monday that Harbinger's announced offer for all of CENT is worth USD1.1bn including debt.

Country: USA

Sector: Consumer Products

Target: The pets busienss, Central Garden & Pet Co

Buyer: Harbinger Group Inc

Vendor: Central Garden & Pet Co

Deal size in USD: 750m

Type: Corporate acquisition

Status: Bidding

Comment: Deal size refers to offer for the pet business., WSJ says the offer including debt is worth USD1.1bn.

COPYRIGHT 2014 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2014 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:M & A Navigator
Date:Jun 23, 2014
Words:317
Previous Article:Wisconsin Energy to buy Integrys Energy for USD9.1bn.
Next Article:SNC-Lavalin to acquire Kentz in GBP1.2bn deal.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters