NEW YORK — Clayton, Dubilier & Rice announced an agreement under which CD&R-managed funds will acquire Radio Systems Corp., described as “the leading innovator in the companion pet health and safety market.”
Financial terms of the deal were not disclosed.
Founded in 1991 by entrepreneur Randy Boyd, Radio Systems Corp. designs and distributes more than 2,000 pet products under brand names such as Invisible Fence, PetSafe, ScoopFree, SportDOG and Kurgo, among others. Headquartered in Knoxville, TN, the company has more than 800 employees worldwide that help the company reach consumers across the Americas, Europe and Asia.
Radio Systems holds the No. 1 market position by sales in many of the pet categories it serves, including pet containment, pet doors, pet training and pet waste management, according to a press release. Radio Systems’ strong positioning is further augmented by its broad patent portfolio as well as its capabilities in marketing, merchandising and distribution.
As Radio Systems transitions to new ownership, Randy Boyd, founder and chairman, has agreed to serve on the Board of Directors to maintain continuity and the company’s strong ties to the Knoxville community.
“With the backing of CD&R and the talented team at Radio Systems, I’m confident the company will continue to deliver the best solutions and services available to its customers,” said Boyd. “I’m excited for Radio System’s future growth and the success and benefits it will bring to our employees, pet owners, and our local economy.”
“The market for pet care is large and growing with attractive long-term secular tailwinds and demonstrated recession-resilience. We believe Radio Systems’ business model and channels align well with our experience with similarly positioned consumer companies,” said CD&R partner Kenneth Giuriceo. “We look forward to supporting the company’s continued innovation and exciting growth plans.”
“Radio Systems is a differentiated market leader with a talented management team, dedicated, hard-working employees, a product portfolio that pet owners truly value, and a three-decade track record of product-driven innovation and strong overall results,” said CD&R operating partner John Compton. “We believe Radio Systems is a great fit with CD&R’s experience helping businesses prosper over the long term.”
The Radio Systems board of directors, which ran a competitive process and entertained multiple offers to find the right partner, unanimously approved the transaction, according to the release. Upon the closing, expected around June 2020, Compton, a Knoxville resident, will become chairman of Radio System Corp.’s board. Compton is the former president of PepsiCo and serves as chairman of three other CD&R portfolio companies: American Greetings Corp., Drive DeVilbiss Healthcare and TruGreen Corp. In addition, he serves on the board of directors of First Horizon National Corp.