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Friday June 11, 9:41 am Eastern Time
Company Press Release
SOURCE: PetQuarters.com
PetQuarters.com Announces Signing of Definitive Agreement to
Purchase Leading Pet Supply Catalog Company
LONOKE, Ark., June 11 /PRNewswire/ -- PetQuarters.com (OTC Bulletin Board: PDEN - news), the Internet's premier pet supply store located at www.petquarters.com, announced today that it had entered into a definitive agreement to purchase Humboldt Industries, Inc. of Hazelton, Pennsylvania for $9.2 million in cash and stock. Humboldt,
a leader in the pet supply catalog business, currently distributes its two pet catalogs -- Home Pet Shop and the Dog's Outfitter -- to retail and wholesale customers throughout the United States and in selected foreign markets. Humboldt generated revenues of nearly $15 million in 1998. The transaction is expected to close later this summer.
''Acquiring Humboldt is a major step forward in the implementation of PetQuarters' business strategy. Fulfillment and customer service are the Achilles' heels of many Internet retailers. Jack Rosenzweig, the president and CEO of Humboldt, and his team have built not only a strong catalog operation but also a scalable, state-of-the-art fulfillment platform that can support our future growth,'' stated Steve Dempsey, president and CEO of PetQuarters. ''Humboldt,
which has been in the pet supply business since 1981, has already addressed many, if not most, of the fulfillment and customer care issues that PetQuarters faces in the on-line marketplace.''
Humboldt operates a distribution center on its 10-acre site in Hazelton, Pennsylvania. The center includes a call center, an internal catalog design department, and a warehouse operation that stocks more than 14,000 stock-keeping units (''SKUs''). Humboldt's operations, which currently employ a total of 82 individuals, are supported by a sophisticated management information system (''MIS'') and a communications platform that integrates order entry, order payment,
fulfillment, tracking, and customer care with inventory and mailing list management, accounting and financial reporting, and marketing analysis.
''As someone with 37 years of experience in the pet industry, I believe that the Internet is going to play an increasingly
important role in the retail and wholesale distribution of pet products and supplies,'' said Jack Rosenzweig, president and
CEO of Humboldt. ''We at Humboldt are excited to address this opportunity as part of PetQuarters, and we look forward to working with Steve Dempsey and his team. Humboldt's fulfillment and customer care expertise will accelerate the implementation of PetQuarters' overall business strategy.''
''The synergies between Internet retailers and catalog companies are substantial, particularly the ability to offer our Internet customers a printed catalog of our products,'' stated Dempsey. ''Additionally, having access to Humboldt's 24 by 7 customer service operation assures PetQuarters position as a leader in customer care and commitment to our valued shoppers. Finally, the acquisition brings with it a significant line of private label pet supplies under the Therapet(TM)
name, which we plan to expand substantially.''
PetQuarters.com, founded in 1997, is the Internet's premier site for pet supplies, catering to the needs of pet owners by providing secure, online purchases of thousands of items from its web site at www.petquarters.com. The Microsoft WebTV Network recently selected PetQuarters as a featured partner, and PetQuarters has entered into a strategic marketing alliance with Pet Assure, Inc., the only nationwide pet HMO.
SOURCE: PetQuarters.com |
