OurPet’s to Acquire Cosmic Pet

 OurPet's Co., a Fairport Harbor, Ohio-based manufacturer of pet products, reported today that it has entered into an asset purchase agreement with catnip supplier Cosmic Pet Products.

Under the terms of the agreement, Cosmic Pet will continue operations at its Hagerstown, Md., facility as a division of OurPet's. OurPet's will also enter into an agreement for sales representation of key products with an affiliate of Cosmic Pet, the company reported.

OurPet's anticipates that the purchased assets of Cosmic Pet will contribute approximately $2.25 million to $2.75 million in revenue and contribute to an increase in earnings per share during the next 12 months.

"This is really a win-win for everyone, including the customers, retail dealers and employees of our two companies," said OurPet's president and founder Dr. Steve Tsengas, Ph.D. "In terms of their corporate philosophy, history and commitment to innovation, OurPet's and Cosmic Pet share a great deal in common."

Leon Seidman, president and founder of Cosmic Pet, echoed Dr. Tsengas' sentiments.

"This is a great day for our company," he said. "We've had a lot of suitors interested in acquiring Cosmic Pet, but they didn't feel right, primarily because we never felt comfortable about their shared commitment to quality.

"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," Seidman continued. "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."

The deal, which is subject to closing conditions, is scheduled to close in the third quarter of 2010.