Central Garden & Pet looking to maintain flexibility needed for growth and acquisitions

By Jennifer Lanning Drey

Savannah, Ga., June 29 - Central Garden & Pet Co. seeks to ensure that its debt will allow the company the flexibility necessary to make acquisitions as well as grow the business organically, Lori Vargas, its chief financial officer, said during a Wednesday presentation at the Oppenheimer consumer conference in Boston.

Vargas also reminded listeners that Central Garden & Pet amended its senior secured revolving credit facility on June 8, increasing the size to $375 million from $275 million and extending the maturity date by one year to June 2016. The facility has a $200 million accordion feature.

Regarding potential investments in growth, Vargas said Central Garden & Pet is looking to increase the top line first with organic growth, but also plans to use acquisitions if they are a good fit.

"We want to build and leverage our existing brands, new product and packaging innovation and then pursue strategic acquisitions," Vargas said.

The CFO also noted that Central Garden & Pet strengthened its balance sheet during the downturn, increasing cash and investments while decreasing debt.

Central Garden & Pet is a Walnut Creek, Calif.-based producer and seller of products for the pet and lawn and garden supplies markets.

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