Oil-Dri Corp Completes Asset Acquisition, Discloses Financial Obligations

TL;DR

Oil-Dri just bought assets and took on new debt/obligations. Big moves!

AI Summary

On May 1, 2024, Oil-Dri Corporation of America filed an 8-K report detailing the completion of its acquisition of assets. The filing also disclosed the creation of a direct financial obligation and an obligation under an off-balance sheet arrangement, along with Regulation FD disclosures and financial statements/exhibits.

Why It Matters

This filing indicates significant corporate activity for Oil-Dri, including asset acquisition and new financial commitments, which could impact its financial structure and future operations.

Risk Assessment

Risk Level: medium — The filing involves asset acquisition and new financial obligations, which inherently carry financial and operational risks.

Key Players & Entities

• Oil-Dri Corporation of America (company) — Registrant
• May 1, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.10 — ich registered Common Stock, par value $0.10 per share ODC New York Stock Exchange
• $46 m — ate cash consideration of approximately $46 million, subject to certain adjustments s
• $3.3 million — on of the Purchase Price (approximately $3.3 million) was deposited in a specified escrow ac
• $10 million — e Purchase Price was financed through a $10 million advance under the Company's existing cr

Filing Documents

• odc-20240501.htm (8-K) — 49KB
• pressrelease-final.htm (EX-99.1) — 8KB
• pressrelease-final001.jpg (GRAPHIC) — 244KB
• pressrelease-final002.jpg (GRAPHIC) — 276KB
• pressrelease-final003.jpg (GRAPHIC) — 40KB
• 0000074046-24-000033.txt ( ) — 989KB
• odc-20240501.xsd (EX-101.SCH) — 3KB
• odc-20240501_def.xml (EX-101.DEF) — 14KB
• odc-20240501_lab.xml (EX-101.LAB) — 26KB
• odc-20240501_pre.xml (EX-101.PRE) — 15KB
• odc-20240501_htm.xml (XML) — 3KB

01 Completion of Acquisition of Disposition of Assets

Item 2.01 Completion of Acquisition of Disposition of Assets. As previously disclosed, on April 16, 2024, Oil-Dri Corporation of America, a Delaware corporation (the "Company"), entered into a Stock Purchase Agreement (the "Purchase Agreement") with Ultra Pet, LLC, a Delaware limited liability company ("Seller"), Ultra Pet Company, Inc., a Delaware corporation ("Ultra Pet"), and certain equityholders of Seller set forth on the signature page thereto ("Seller's Equityholders"), pursuant to which the Company agreed to purchase all of the issued and outstanding shares of capital stock of Ultra Pet (the "Shares") from Seller (the "Transaction"). On May 1, 2024, the Company completed the Transaction and acquired the Shares. At the closing of the Transaction (the "Closing"), the Company paid Seller an aggregate cash consideration of approximately $46 million, subject to certain adjustments set forth in the Purchase Agreement (as adjusted, the "Purchase Price"). A portion of the Purchase Price (approximately $3.3 million) was deposited in a specified escrow account for the purposes of satisfying any post-Closing indemnification claims made pursuant to the Purchase Agreement and certain post-Closing adjustments pursuant to the Purchase Price. The foregoing description of the Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to the Purchase Agreement, a copy of which was filed as Exhibit 2.1 to the Current Report on Form 8K filed by the Company on April 16, 2024 and is incorporated herein by reference. The Purchase Agreement has been provided solely to inform investors of its terms. The representations, warranties and covenants contained in the Purchase Agreement were made only for the purposes of such agreement and as of specific dates and were made solely for the benefit of the parties to the Purchase Agreement and may be intended not as statements of fact, but rather as a way of allocating risk to one of the parties i

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. On May 1, 2024, the Company issued a press release (the "Press Release") announcing (i) the Closing described in Item 2.01 above and (ii) the expected timing of the Company's third quarter of fiscal 2024 earnings release and discussion. A copy of the Press Release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. The information in this Item 7.01 and Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section. This information shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference to such disclosure in this Form 8-K in such a filing.

Forward-Looking Statements

Forward-Looking Statements Certain statements in this Current Report on Form 8-K may contain forward-looking statements, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that are based on the Company's current expectations, estimates, forecasts and projections about the Company's future performance, business, beliefs and management's assumptions. In addition, the Company, or others on the Company's behalf, may make forward-looking statements in other press releases or written statements, or in the Company's communications and discussions with investors and analysts in the normal course of business through meetings, webcasts, phone calls and conference calls. Forward-looking statements can be identified by words such as "expect," "outlook," "forecast," "would," "could," "should," "project," "intend," "plan," "continue," "believe," "seek," "estimate," "anticipate," "may," "assume," "potential," "strive," and similar references to future periods. Such statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially, including, but not limited to, those described in Item 1A, "Risk Factors" of the Company's Quarterly Report on Form 10-Q for the quarter ended January 31, 2024 and the Company's most recent Annual Report on Form 10-K and from time to time in the Company's other filings with the Securities and Exchange Commission. Should one or more of these or other risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, intended, expected, believed, estimated, projected, planned or otherwise expressed in any forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except to the extent required by law, the Company does not have any intention or obli

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit Number Description of Exhibits 2.1* Stock Purchase Agreement, dated April 16, 2024, by and among the Oil-Dri Corporation of America, Ultra Pet, LLC, Ultra Pet Company, Inc., and certain equityholders of Ultra Pet, LLC set forth on the signature page thereto (incorporated by reference to Exhibit 2.1 to Oil-Dri Corporation of America's Current Report on Form 8-K filed on April 16, 2024) . 99.1 Press Release of the Company, dated May 1, 2024. 104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the iXBRL document). * The schedules and similar attachments to this exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to provide a copy of the omitted schedules and similar attachments on a supplemental basis to the Commission or its staff, if requested.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. OIL-DRI CORPORATION OF AMERICA By: /s/ Laura G. Scheland Laura G. Scheland Chief Legal Officer Date: May 1, 2024

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View this 8-K filing on SEC EDGAR