CHICAGO — Oil-Dri Corporation of America is acquiring privately held Ultra Pet Company Inc. for $46 million in cash.
Oil-Dri Corporation of America is a manufacturer of sorbent minerals, including clay-based cat litter. Ultra Pet is a supplier of silica gel-based crystal cat litter.
Daniel Jaffee, Oil-Dri’s president and CEO, said: “We are excited about this acquisition, as it will allow Oil-Dri to expand its distribution into the growing crystal litter segment. This strategic move further strengthens Oil-Dri’s position as one of the largest cat litter producers in North America and aligns perfectly with our mission to Create Value from Sorbent Minerals. We look forward to welcoming the Ultra Pet team to the Oil-Dri family.”
More from the press release:
Oil-Dri plans to finance this acquisition through a combination of cash-on-hand and its existing credit facilities. The board of directors of Oil-Dri and the managers of Ultra Pet’s parent company have unanimously approved the transaction which is expected to close in Oil-Dri’s fourth quarter of fiscal year 2024, after satisfaction of customary closing conditions. Oil-Dri expects this transaction to be immediately accretive to earnings following the completion of the transaction.
Ultra Pet, headquartered in Anderson, South Carolina, is a recognized innovator and pioneer within the alternative cat litter market with annual net sales of approximately $24 million. Ultra Pet introduced the original crystal cat litter, Litter Pearls, in the United States in 1998. Since then, Ultra Pet has expanded its product offerings and has an established presence in the crystal cat litter segment. Through multiple distribution channels such as e-commerce, pet specialty, and grocery, Ultra Pet has grown its business significantly over the past several years.
Since 2019, the crystal cat litter segment has experienced tremendous sales growth of 500%¹. This pending acquisition provides Oil-Dri the opportunity to become a significant player in this rapidly growing space within the cat litter market. Ultra Pet’s line of branded and private label silica gel-based crystal cat litter offerings fit well with Oil-Dri’s pet care product portfolio. Similar to Oil-Dri’s clay-based lightweight branded and private label litter, Ultra Pet’s crystal litter products are lightweight with superior odor control. Crystals are 99.9% dust free and absorb up to 90% of their weight in liquid. All of these benefits align well with Oil-Dri’s strategic focus on growing the lightweight cat litter segment with both branded and premium private label high quality products sold at a fair price to consumers.
Daniel Jaffee, Oil-Dri’s President and Chief Executive Officer, stated, “We are excited about this acquisition, as it will allow Oil-Dri to expand its distribution into the growing crystal litter segment. This strategic move further strengthens Oil-Dri’s position as one of the largest cat litter producers in North America and aligns perfectly with our mission to Create Value from Sorbent Minerals. We look forward to welcoming the Ultra Pet team to the Oil-Dri family.”
Christopher Lamson, Oil-Dri’s Group Vice President of Retail and Wholesale, commented, “We plan to leverage our strong relationships within the grocery, mass merchandiser, and other growth channels to help increase sales of Ultra Pet’s unique crystal litter products. Our sales and marketing teams are eager to work alongside the Ultra Pet team to propel these value-added items into the marketplace. We expect this combination to create more availability of Ultra Pet products for the consumer and generate greater efficiencies for our retail customers.”
Richard Murbach, Ultra Pet’s Chief Executive Officer, added, “Joining Oil-Dri opens up incredible opportunities for our crystal cat litter products. Oil-Dri’s strong relationships within the industry, and its proven track record in product development, operational efficiency, and collaboration with customers will enhance Ultra Pet’s growth trajectory. Our products complement each other very well, and our combined strengths will allow us to grow the business and reach even more consumers and their feline companions.”
About Oil-Dri Corporation of America
Oil-Dri Corporation of America, founded in 1941, is a leading manufacturer and supplier of specialty sorbent products for the pet care, animal health and nutrition, fluids purification, agricultural ingredients, sports field, industrial and automotive markets. Oil-Dri’s largest principal product is cat litter. Within the United States, Oil-Dri is the leading manufacturer of lightweight cat litter in units and the largest producer of private label coarse litter in both units and dollars. The company’s cat litter brands include Cat’s Pride and Jonny Cat. Oil-Dri is vertically integrated which enables the company to efficiently oversee every step of the process from research and development to supply chain to marketing and sales. With over 80 years of experience, the Company continues to fulfill its mission to Create Value from Sorbent Minerals. To learn more about Oil-Dri, visit oildri.com.
About Ultra Pet Company, Inc.
Ultra Pet Company, Inc. was established in 2003 and was formed to acquire Harvest Ventures, Inc. (founded in 1996) and Cedar Fresh Products, Inc. (established in 2003). The company’s product portfolio includes brands such as Ultra Pearls, Litter Pearls, Neon Litter, EcoKitty, and ZenKitty as well as many private label offerings. Ultra Pet sells to consumers both domestically and internationally through e-commerce and brick and mortar retail stores. To learn more about Ultra Pet, visit ultrapet.com.
Advertisement