Smell a rat? That could be because lawn-care specialist Scotts Miracle-Gro (NYSE: SMG ) announced today that it has agreed to acquire the Tomcat consumer rodent control business of Bell Laboratories, whose products are sold at home centers, mass retailers, grocery and drug stores, and general merchandise location in the U.S. and elsewhere around the globe. Terms of the agreement were not disclosed.
Included with the transaction is the Tomcat brand as well as a long-term partnership to bring innovative technologies to the consumer rodent control market. The deal is expected to be accretive to Scotts' operating margin beginning in its fiscal 2014 year and will fill out its existing controls business, which consists of a limited line of Ortho Home Defense rodent control products.
Commenting on the attractive nature of the rodent control business, Scotts Miracle-Gro President and COO Barry Sanders said, "The addition of the Tomcat consumer business allows us to significantly expand our global commercial footprint. With a strong consumer brand and full line of rodent control products we are better able to serve both our consumers and our retail partners."
In addition to R&D, Bell Labs will continue to perform regulatory and manufacturing functions for the Tomcat brand.
Shares of Scotts rose $0.98, or 1.8%, and closed the trading day at $55.9 per share.