Central Garden & Pet Co., Walnut Creek, Calif., said Oct. 14 that its board of directors unanimously decided that the company will not accept proposals by Harbinger Group Inc. In June, Harbinger gave Central two options. It would acquire all of Central’s common stock at $10 per share in cash or, alternatively, acquire the company’s Pet segment for $750 million in cash. The board was assisted in its review by Lazard as financial advisor and Cravath, Swaine & Moore LLP as legal advisor.
"While we appreciate Harbinger’s interest in Central, we believe the proposals do not reflect Central’s future growth opportunities or the value we expect to deliver to our shareholders in the coming years," said Central President and CEO John Ranelli. “Our board and management believe that Central is taking the right steps to improve our business and generate superior revenue and profitability growth. We are confident that these initiatives will secure our position as a leader in our marketplace and build value for our shareholders."