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EXHIBIT 99.1
[LOGO OF CENTRAL GARDEN & PET]
Corporate Office
3697 Mt. Diablo Blvd., Suite 310
Lafayette, CA 94549
(925) 283-4573
Fax (925) 283-4984
FOR IMMEDIATE RELEASE
Contacts: Gregory Reams
Central Garden & Pet
(925) 283-4573
CENTRAL GARDEN & PET FILES FORM 10 WITH SEC TO
SPIN OFF LAWN AND GARDEN DISTRIBUTION BUSINESS
________________________________________
LAFAYETTE, CALIFORNIA, June 7, 2000 - Central Garden & Pet Company (NASDAQ:
CENT) today announced that it has filed with the Securities and Exchange
Commission ("SEC") a Form 10 which, when declared effective by the SEC, would
permit the Company to spin off its lawn and garden distribution business to
shareholders. After the spin-off is completed, the lawn and garden distribution
business would become a separate public company while Central would continue to
operate its existing lawn and garden branded products business, as well as its
branded pet products and pet distribution businesses.
Central anticipates that the SEC review process will take approximately six
weeks and that the spin-off would take place in July.
Consummation of the spin-off is subject to obtaining all necessary
regulatory approvals and final authorization by Central's Board of Directors,
among other things.
The attached table outlines Central Garden & Pet's financial performance,
as if the Garden Distribution business had been spun off on September 29, 1996.
Central Garden & Pet Company is the nation's leading manufacturer,
supplier, and merchandiser of consumer lawn and garden and pet supply products.
Central's proprietary branded products include Pennington Seed(R), Kaytee(R),
TFH(R), Nylabone(R), Zodiac(R), and Four Paws(R) pet products, Island(R)
aquariums, Matthews(R) Four Seasons products and Grant's(R) ant
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control products. Central offers its retail and branded manufacturing partners a
wide array of value-added services proven to increase sales and profitability,
including logistics and distribution support, inventory management, advertising
and promotional programs, in-store merchandising service, and sales program
development. For additional information on Central Garden & Pet, including
access to the Company's SEC filings, please visit the Company's website at
http://www.centralgardenandpet.com.
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-more-
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: The statements contained in this release which are not historical facts
are forward-looking statements that are subject to risks and uncertainties that
could cause actual results to differ materially from those set forth in or
implied by forward-looking statements. These risks are described in the
Company's Securities and Exchange Commission filings, including, without
limitation, the final accounting for all issues between the Company and Monsanto
under the Solaris Agreement, such as the amounts receivable from Monsanto for
cost reimbursements, payments for cost reductions and payments for services; the
amounts payable to Monsanto for inventory; responsibility for obsolete inventory
and for non-payment by Solaris' direct sales accounts; and costs associated with
the realignment of the Company's lawn and garden distribution operations to
reflect anticipated business levels for the fiscal year 2000.
(Tables Follow)
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CENTRAL GARDEN & PET SELECTED FINANCIAL INFORMATION
(in $mm)
<TABLE>
<CAPTION>
Fiscal Year Ended Six Months Ended
----------------- ----------------
Sept. 27, Sept. 26, Sept. 25, March 27, March 25,
1997 1998 1999 1999 2000
Garden Distribution (Unaudited) (Unaudited)
---------------------------------------- -------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C>
Net sales $586,892 $ 681,167 $ 752,094 $298,531 $195,828
Cost of goods sold 514,322 591,370 656,396 266,543 168,069
-------- ---------- ---------- -------- --------
Gross Profit 72,570 89,797 95,698 31,988 27,759
Selling, general and
administrative expenses 50,664 63,997 80,135 28,986 34,625
Other charges 1,926 1,839
-------- ---------- ---------- -------- --------
Income(loss) from operations $ 21,906 $ 23,874 $ 13,724 $ 3,002 ($6,866)
======== ========== ========== ======== ========
Central Garden & Pet Company
(Without Garden Distribution)
----------------------------------------
Net sales $254,115 $ 613,697 $ 783,535 $376,595 $405,706
Cost of goods sold 180,603 417,773 526,432 249,842 276,459
-------- ---------- ---------- -------- --------
Gross profit 73,512 195,924 257,103 126,753 129,247
Selling, general and
administrative expenses 58,496 145,017 209,244 98,273 102,068
Other charges 9,077 5,763
-------- ---------- ---------- -------- --------
Income from operations $ 15,016 $ 41,830 $ 42,096 $ 28,480 $ 27,179
======== ========== ========== ======== ========
Central Garden & Pet Company
(As reported)
----------------------------------------
Net sales $841,007 $1,294,864 $1,535,629 $675,126 $601,534
Cost of goods sold 694,925 1,009,143 1,182,828 516,385 444,528
-------- ---------- ---------- -------- --------
Gross profit 146,082 285,721 352,801 158,741 157,006
Selling, general and
administrative expenses 109,160 209,014 289,379 127,259 136,693
Other charges 11,003 7,602
-------- ---------- ---------- -------- --------
Income from operations $ 36,922 $ 65,704 $ 55,820 $ 31,482 $ 20,313
======== ========== ========== ======== ========
</TABLE>
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