The history of business has shown that it’s tempting for young ambitious companies to acquire outside operations in an effort to grow quickly, frequently with more confidence than financial justification. Too often the result is a mismatch in terms of corporate culture, target markets, and operational assets, leading to a financially weaker and less competitive entity.
When Phoenix-based For The Earth Corporation realized that it needed to flesh out its presence in the marketplace through selective acquisitions, it was determined not to make those kinds of mistakes. The company, a leading producer of environmentally safe household and pet care products, went out of its way to ensure compatibility, not just in markets and assets, but in mission.
The driving force behind For The Earth has been its unswerving dedication to people, pets, and the planet, and it has successfully gone after those businesses that shared that philosophy. At the same time, the company has never let its mission blind its business sense, always identifying and requiring meaningful synergies that will translate into increased efficiency.
The company’s CEO and President, Nelson Grist, commented on this strategy. “While maintaining the strength of the brands and products of each of these companies we are acquiring, we are combining manufacturing space, centralizing administrative functions, improving the use of existing warehouse space, multi-tasking our sales force, and expanding distribution outlets. That means we are able to cut costs and spend money wisely. That translates to significant increases in shareholder value.”
Specifically, the recently initiated acquisitions of Prestige Pet Products and Kat-Box-King were carefully designed to improve the company’s manufacturing, warehouse, and distribution operations, as well as market presence. Once complete, the deals are expected to boost revenues to $8-$10 million by the end of 2011, and help the company reach its goal of $17 million in revenue for 2012.
For additional information, visit the company’s website at www.ForTheEarthCorp.com
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