WESTBURY, N.Y. — PL Developments on Monday signed a definitive agreement to acquire Aaron Industries, manufacturer and distributor of liquid-dose private-label over-the-counter, pharmaceutical and consumer healthcare products for the retail and packaged goods industry.
Terms of the deal were not disclosed. The agreement is subject to government approval under the Hart-Scott-Rodino Act. It is anticipated the deal will close in late November.
“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," stated Mitch Singer, PL Developments president and CEO.
“This is a rare combination of two industry leaders with complementary product lines that fit perfectly together,” added Evan Singer, EVP 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," he said. "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.
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 industries. As a result of the acquisition, PL Developments will supply products to retailers worth more than $1 billion of sales to consumers encompassing more than 3,000 SKUs of solid- and liquid-dose OTC medicines and consumer healthcare products.
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, S.C., and Los Angeles.
PL Developments and Aaron Industries serve most of the nation’s largest retailers, including WalMart, Sam’s Club, Costco, Walgreens, CVS/Caremark, Rite Aid, Kroger, Topco, Target, Dollar General and Family Dollar.