Central Garden & Pet loses steam in Q3
Central Garden & Pet took a few steps back in the third quarter, posting an 11% sales decrease and a year-over-year decline in income.
Net sales for the three months ended June 28 were $438.0 million, down from $494.1 million in the third quarter of 2013. The decline took place in both the Pet and Garden segments, and it was exacerbated by a $16.9 million charge related to the discontinuance of two garden products.
Net income came in at $4.7 million, down from $13.7 million in the year-ago period. This translates to $0.09 per fully diluted share, down from $0.28 last year.
President and CEO John Ranelli commented on the company’s decision to discontinue the products, citing weak sales that discouraged retailers from stocking the items.
“The right decision was to cut our losses, discontinue the products and move forward," he said. "We are continuing our aggressive efforts to improve customer service, address issues that have impacted financial performance and position the company to create value for shareholders.”
Fortune Brands acquires SentrySafe
Fortune Brands Home & Security purchased SentrySafe, a North American brand of fire-, water- and theft-resistant security safes, files, chests and other protective containers for residential and light commercial markets.
The price tag was $117.5 million.
The deal brings new avenues of growth to Fortune’s Master Lock division. “SentrySafe’s strength in complementary product categories enable The Master Lock Company to leverage strong iconic brands domestically and internationally,” said Terry Horan, Master Lock president, in a prepared statement.
Founded in 1930, Sentry Group pioneered the fire- and water-resistant protective security container category in mass market, big-box retailers through its innovative products, industry-leading go-to-market strategies and world-class global supply chain.
Lincoln International acted as the exclusive sell-side adviser to SentrySafe.
Jim Brush, CEO at SentrySafe, commented: “Fortune Brands provides us with a tremendous growth platform and is the right strategic partner for SentrySafe moving forward.”
Klein Tools hires VP manufacturing
Lincolnshire, Illinois-based Klein Tools hired James Pultorak as VP manufacturing. He will replace Chris Hargan, current senior VP manufacturing, who will retire at the end of 2014.
Pultorak brings over 20 years of experience in manufacturing and operations in a variety of industries, including hand tools, tool storage, printing, packaging, roofing and automotive.
In his new role, Pultorak will be responsible for formulating, recommending and executing manufacturing strategies and policies to guide Klein Tools in maintaining and improving its competitive position and profitability. He will be responsible for all the manufacturing functions and plants at Klein Tools and will be located at the Mansfield, Texas, facility.
Prior to joining Klein Tools, Pultorak worked at WS Packaging Group as VP operations, where he was responsible for multiple facilities’ P&Ls and provided leadership to the plant general managers. At APEX Tool Group (formerly Danaher Corp.) as VP operations, he was responsible for numerous facilities and guided various departments, including finance, human resources, EHS, supply chain, DBS, quality and new product engineering. He was also operations manager at GAF Materials Corporation.
“We welcome Jim’s leadership experience combined with his expertise in client relations, interpersonal skills and knowledge of the manufacturing industry and look forward to Jim’s positive impact on our organization,” states Thomas R. Klein, president of Klein Tools. “We would also like to thank Chris Hargan, senior VP manufacturing, for his leadership over the past 15 years and wish him all the best in the next chapter of his life.”