Printer Friendly

SCOTTS CONTINUES LAWN AND GARDEN MARKET EXPANSION WITH REPUBLIC TOOL ACQUISITION

 MARYSVILLE, Ohio, Nov. 23 ~PRNewswire~ -- The Scotts Company (NASDAQ: SCTT) announced today that in a move designed to continue its growth trend, expand into untapped market areas, and attract new customers through better technology, it has completed the acquisition of Republic Tool & Manufacturing Company of Carlsbad, Calif. The purchase price was not disclosed.
 Republic is a leading manufacturer of lawn spreaders and other lawn and garden equipment. The company sells its products to major retailers under the "EZ" label and under retailers' private labels. Sales for 1991 were approximately $14 million. The transaction is not expected to be dilutive to 1993 earnings.
 Theodore J. Host, president and chief operating officer of Scotts, said the acquisition of Republic opens new avenues for market expansion that are in keeping with Scotts growth strategy.
 "The acquisition permits us to introduce products into lawn and garden market areas in which we're not currently participating," Host said. "We believe this will help us bring more consumers into the do- it-yourself lawn and garden market by making it easier for them to get better results. Because we'll be better able to develop and deliver improved lawn application systems, the consumer will experience better performance and ease-of-use. That's going to create more satisfied Scotts customers who will then buy more Scotts products."
 Host said the Republic acquisition gives Scotts the ability to become basic in the areas of plastic molding and metal forming, thereby creating significant growth opportunities for Scotts into other areas of the lawn and garden business by giving the company the capability of direct manufacturing of non-power, durable goods.
 Scotts, through its subsidiary the O.M. Scott & Sons Company, currently markets lawn spreaders and other equipment manufactured under the Scotts(R) brand name. Host said the marketing of those products will continue. He added that he expects the Republic acquisition to help Scotts serve the industry better because retailers will now have one easy source for products that bear two of the most respected names in the industry.
 "Whether it's a Scotts, Republic, or a private label, the products retailers want will be available with the quality and service that are the hallmarks of these two companies," Host said.
 Host said the acquisition was expected to have a positive effect on the costs of doing business. He said Republic has a reputation for innovative product design and efficient, low cost manufacturing, qualities that have made Republic such an attractive company.
 "This acquisition gives Scotts an opportunity to be more cost- effective as we integrate our Scotts lawn spreader business with the Republic technology," Host said. "Republic has successfully integrated the needs of the manufacturing process and the needs of the consumer to produce products that are high in quality, easy to assemble and easy to use."
 Host said Republic will continue to operate independently and continue to market Republic branded products. He added that the new manufacturing capabilities could also aid Scott's Professional Business Group, which markets products for commercial nurseries, sports fields, golf courses, and other professional turf and landscape applications. Host also said the acquisition would open new opportunities internationally.
 "The acquisition fits perfectly into our strategy not only domestically, but in our international business, where there is real need for quality lawn and garden application products," Host said.
 With sales of $388 million in fiscal year 1991, Scotts is the country's leading producer and marketer of consumer do-it-yourself lawn care and professional golf course turf care products. The company's Turf Builder(R) products are the nation's most popular lawn care fertilizers and fertilizer~control combinations. The company's Hyponex(R) products are the nation's leading line of organic products, including top soils, potting soils, composted manures and bark mulches.
 -0- 11~23~92
 ~CONTACT: Thomas C. Franco or Allison Sargent of Broadgate Consultants, Inc., 212-229-2222, for Scotts~
 (SCTT)


CO: Scotts Company ST: Ohio IN: HOU SU:

PS-LR -- NY010 -- 0293 11~23~92 09:24 PST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 23, 1992
Words:653
Previous Article:GE AEROSPACE TO MERGE INTO MARTIN MARIETTA TO CREATE BROADLY DIVERSIFIED GLOBAL TECHNOLOGY LEADER
Next Article:BANKRUPTCY COURT DENIES CREDITORS MOTION TO CONVERT EL PASO REFINERY, L.P.'S BANKRUPTCY FILING TO CHAPTER 7 LIQUIDATION PROCEEDING
Topics:


Related Articles
SCOTTS REPORTS RECORD FIRST QUARTER SALES AND HIGHER EARNINGS
SCOTTS FISCAL SECOND QUARTER SALES FORECAST
SCOTTS REPORTS HIGHER SIX-MONTH SALES AND EARNINGS BEFORE EXTRAORDINARY CREDIT
SCOTTS FORECASTS FISCAL THIRD QUARTER SALES INCREASE OF ABOUT 17.5 PERCENT
SCOTTS NINE-MONTH EPS UP 14 PERCENT ON 12 PERCENT SALES INCREASE; SALES RECOVERY PUSHES THIRD QUARTER SALES UP 20 PERCENT
SCOTTS REPORTS FISCAL 1993 EPS UP 36 PERCENT BEFORE FASB ACCOUNTING CHANGES AND EXTRAORDINARY ITEMS
SCOTTS TO SELL AND DISTRIBUTE PROFESSIONAL PRODUCTS THROUGH SHEMIN NURSERIES; CONTINUES TO BROADEN EXPOSURE TO THE HORTICULTURAL MARKET
SCOTTS REPORTS FISCAL FIRST QUARTER RESULTS
Five Founding Sponsors Help National Garden Blossom.
Scotts LawnService Announces Largest Acquisition to Date; SLS growth strategy on track.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters