Spectrum Brands Acquires Seed Resources

Spectrum Brands Holdings Inc., which manufactures Tetra, 8-in-1 and other pet product brands under its United Pet Group business unit, has acquired wild bird seed cake producer Seed Resources LLC of Grand Rapids, Mich., for $12.5 million. The acquisition marks Spectrum's entry into the wild bird market.

"This acquisition is consistent with our stated objective to selectively expand our pet supplies business both through organic growth as well as small, targeted bolt-on acquisitions to expand product lines and to create geographic revenue and operational synergies," Spectrum Brands CEO David Lumley said.

Seed Resources manufactures and distributes Birdola brand seed cakes and other wild bird and squirrel products, including bird feeders, suet cakes and combination seed cakes/suets. Company spokesman Dave Prichard said Spectrum chose to enter the market with Seed Resources because Birdola is a premium brand and the bird cake segment is the most attractive segment of the market.

Birdola is currently offered by a handful of mass merchants and pet specialty retailers. Prichard said Spectrum plans to expand distribution in those channels and explore distribution opportunities in other key channels.

Certain key management will continue on with the company to ensure a smooth transition. Production will remain at Seed Resources' Grand Rapids facility.

"We also expect to utilize Seed Resources' sole manufacturing facility in Grand Rapids to complement existing supply chain resources and to provide additional flexibility to meet the needs of our customer base,"said John Heil, president of Cincinnati-based United Pet Group.