WESTBURY, N.Y. -- PL Developments Inc., a manufacturer, packager and distributor of solid dose over-the-counter (OTC), private-label pharmaceutical and nutritional supplement products, has signed a definitive agreement to acquire Aaron Industries, a manufacturer and distributor of liquid-dose private-label OTC pharmaceutical and consumer health care products for the retail and packaged goods industry.
The privately held companies did not release the terms of the acquisition. The agreement is subject to government approval under the Hart-Scott-Rodino Act. They anticipate that the deal will close in late November.
The combination of the two companies will create a new force among private-label providers to mass merchandisers, drug stores, club stores, dollar stores, grocery chains, convenience stores, drug wholesalers and the entire consumer packaged goods (CPG) industries, they said.
As a result of the acquisition, PL Developments will supply products to retailers worth more than $1 billion of sales to consumers. With more than 1,000 employees and a manufacturing and distribution footprint across the United States, PL Developments will feature a comprehensive array of solid- and liquid-dose OTC medicines and consumer health care products featuring 300 products and 3,000 SKUs.
Aaron Industries, Clinton, S.C., is a low-cost manufacturer of private-label and branded liquid pharmaceutical products that include the national brand equivalents of cough, cold, allergy, pain medicines, digestive health items, pediatric electrolytes and first-aid items.
"We are very pleased to bring together two well-run organizations with strong cultures that have focused on manufacturing excellence, quality products and high-level customer service," said Mitch Singer, president and CEO of PL Developments. "PL Development's preeminent position in the solid dose market segment, combined with Aaron Industries' strength in liquids and first aid products, allows us to provide greater product depth and choices for the growing needs of our retail partners and the consumer packaged goods industry."
Aaron Industries' operations will be completely integrated into PL Developments with combined company headquarters in Westbury, N.Y. Its manufacturing and distribution facilities will remain in Clinton and Los Angeles.
James L. Medford, president and CEO, Aaron Industries, said, "PL Developments is the ideal partner to take us to the next level as the trusted provider to the retail and [CPG] industries."
"This is a rare combination of two industry leaders with complementary product lines that fit perfectly together," said Evan Singer, executive vice president of corporate development for PL Developments. "Both companies have experienced strong growth in recent years and have become important suppliers to our retail and consumer packaged goods customers. Now, with an expanded array of products and capabilities, we see PL Developments establishing more meaningful relationships with our clients by offering a broader product selection and by utilizing our best in class operations, supply chain and quality systems to provide our clients with a scalable and efficient solution for their store brands.
He added, "PL Developments is well positioned to be part of the solution for reigning in escalating national healthcare costs. We will have an even stronger platform to offer consumers compliant, equivalent and safe OTC alternatives to higher-cost branded and prescription products addressing similar medical needs."
PL Developments and Aaron Industries serve retailers including Walmart, Sam's Club, Costco, Walgreen's, CVS, Rite Aid, Kroger, Topco, Target, Dollar General and Family Dollar.
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