OurPet’s Company (OPCO.OB) Signs Purchase Agreement for Cosmic Pet Products

In the company’s news today,

OurPet’s Company announced that they have entered into an asset purchase agreement to acquire certain assets of Cosmic Pet Products. Under the terms of the agreement, OurPet’s will acquire all of Cosmic Pet’s brands including the well-known Cosmic Catnip line. Completion of the transaction is subject to due diligence by OurPet’s and other standard conditions to closing; however, it is expected to close during the third quarter of 2010.

Per the agreement, Cosmic Pet will continue operations at its Hagerstown, Maryland facility as a division of OurPet’s. Part of the plan also includes for OurPet’s to enter into an agreement for sales representation on key products with an affiliate of Cosmic Pet.

Cosmic Pet has had several companies vying to acquire them recently, but, according to Leon Seidman, President and founder of Cosmic Pet in 1975, “they didn’t feel right, primarily because we never felt comfortable about their shared commitment to quality.” With regards to signing the agreement with OurPet’s, Mr. Seidman stated, “OurPet’s had exactly what we were looking for: a commitment to excellence and cat care, a passion for growth and innovation and a genuine concern for the future of our employees. We’re confident that 10 or 20 years from now, Cosmic Catnip is still going to stand for all of the good things that it stands for today, because OurPet’s is guided by the same principles that have shaped our company.”

Dr. Steve Tsengas, the president and founder of OurPet’s, echoed Mr. Seidman’s feelings. “Play-N-Squeak Toys and Cosmic Catnip both represent the standard of excellence in their respective markets,” he said. “The realistic mouse sound that has made Play-N-Squeak Toys so successful was the result of a great deal of extensive research and development. If you look at Cosmic Catnip, you see the same principles at work; it became the best catnip on the market as a result of a lot of hard and intelligent R & D work. Both companies share this vision of excellence.”

It is anticipated that the purchased assets of Cosmic Pet will contribute approximately $2.25 million-$2.75 million in revenue and will be accretive to earnings during the next 12 months. OurPet’s already has a substantial line of consumer products on the market both nationally and internationally including their Play-N-Squeak toys, which won a 2008 Cat Fancy Choice Award. Future plans for more products are already being formulated. “We believe the synergies from our combination of products to make us even stronger than we are today,” said Scott Fitzhugh, Vice President of Sales and Marketing at OurPet’s. “You can expect to see a lot of creative new cat products introduced to the market as a result of this transaction.”

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