Central Garden & Pet makes an acquisition
Central Garden & Pet Company has acquired K&H Manufacturing, a producer of pet supplies and heated pet products.
K&H sells branded pet products under the K&H and K&H Pets brands, which span dog and cat, small animal, and farm and ranch.
K&H has been in business for 20 years, and its patented heating products, as well as products with cooling and other thermal properties, are a strong strategic fit with Central’s existing pet portfolio.
“K&H has exhibited an excellent history of growth, and we are excited to work with the K&H management team, who will be staying with the business, to help it continue to flourish in the years ahead," said George Roeth, President & CEO of Central Garden & Pet.
“Central and K&H have a shared passion for bringing consumers high quality, innovative, value-added products that help pet owners give their pets a more comfortable and caring environment. Together, we can continue to grow the category and develop exciting new products.”
Armstrong doubles its operating income in Q1
Boosted by the continuing ripple effects of its separation from Armstrong Flooring, Armstrong World Industries nearly doubled its operating income in the first quarter.
"We remain focused on changing the growth trajectory of our business over the long term through our product innovation, best-in-class service and new platforms in the Architectural Specialties category," said Vic Grizzle, CEO. "Our double digit sales growth this quarter reflects the initial success of those strategic initiatives, as well as improved market activity."
Operating income from continuing operations came in at $63.0 million, up 192% from the previous year. This was largely driven by lower separation costs, a decrease in the U.S. pension plan expense due to a longer amortization period as a result of the separation from Armstrong Flooring, Inc. — plus the margin impact of higher volume and average unit value improvement.
Net sales also got a nice boost of 9.7% to $315.4 million, up from $287.4 million in the year-ago quarter.
Net earnings also made their way firmly into the black, reaching $30.4 million (as opposed to a loss of $9.9 million in the prior first quarter).
"We are pleased by our strong start to the year, with robust sales growth and gross margin expansion demonstrating that our growth initiatives are gaining traction," said Brian MacNeal, CFO. "While the timing of certain manufacturing and SG&A expenses resulted in temporary adjusted EBITDA margin contraction in the quarter, we are reaffirming our full year guidance of 5%-7% revenue growth and 10%-14% adjusted EBITDA growth versus the prior year."
Pella Corp. to sell subsidiary
Pella Corp. might be known for its windows for stately homes, but it has also manufactured architectural aluminum windows, curtainwall, storefront and entrance systems for commercial construction through its EFCO Corp. subsidiary. On May 1, it was announced that that subsidiary is being sold to Apogee Enterprises.
EFCO, founded in 1951, is headquartered in Monett, Missouri, where full production capabilities are located; it has additional facilities in Missouri, Illinois and Virginia. EFCO has approximately 1,600 employees and has been owned by Pella Corporation since 2007.
Apogee, headquartered in Minneapolis, is a leader in technologies involving the design and development of value-added glass products and services. The company is organized in four segments: architectural glass, architectural framing systems, architectural services and large-scale optical.
Harris Williams & Co. is advising the companies on the pending sale. “The management team at EFCO has done a terrific job of leveraging the company’s strengths in design, quality, customization and service to build one of the industry’s leading providers of architectural solutions with terrific growth prospects,” said Mike Hogan, a managing director in Harris Williams & Co.’s Building Products & Materials Group.