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Brantford, Ontario
July 3, 2002
The Nu-Gro Corporation (TSE-NU) announced today that it has
signed an agreement with
Pickseed
Canada Inc. to combine their
respective expertise to maximize the sales of grass seed in the
Canadian consumer market. Prior to finalizing this agreement
Nu-Gro increased its ownership in EroGreen Seeds, Inc from 70%
to 100%.
The transaction includes a long
term supply agreement under which Pickseed will source raw
materials and package grass seed products at its Lindsay,
Ontario and Sherwood Park, Alberta facilities. The transaction
also includes a license to use the Pickseed. and Oseco. brands.
Nu-Gro sales are expected to increase by $4 million in fiscal
2003 as a result of this transaction.
Nu-Gro is Canada’s leading seller
of packaged consumer lawn and garden products. Popular brand
names include CIL®,
Wilson®, Vigoro®, So-Green® and Green Earth®.
"Nu-Gro’s customers will benefit from combining shipments of
grass seed with other product lines and from one source for
in-store merchandising in the lawn and garden category", said
John Hill, Nu-Gro’s President and CEO.
Pickseed is a leading North
American enterprise in the research, development, production,
distribution and export of forage and turfgrass seeds. "We are
enthusiastic about combining the brand marketing and
distribution strengths of Nu-Gro with the research, development
and production strengths of Pickseed", said Rob Clark, President
of the Pickseed Companies Group.
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