Scotts to Buy Hydroponics Firm
Last week, Scotts Miracle-Gro Co. announced plans to acquire Sunlight Supply Inc., a hydroponics supplier, for $450 million in cash and stock.
According to a statement released by the company, the purchase will greatly enhance Scotts subsidiary, The Hawthorne Gardening Company, “to meet the needs of the rapidly evolving hydroponic products marketplace.”
Jim Hagedorn, chairman and CEO of ScottsMiracle-Gro, said, “We are creating a game-changing moment for ScottsMiracle-Gro, for Hawthorne, the hydroponic products industry and the users of our products.”
Scotts Miracle-Gro has significant exposure to the cannabis industry, as several of its products are used by marijuana cultivators. Hydroponics equipment, similar to what Sunlight Supply makes, also can be used by cannabis companies to grow the plant.
Hagedorn added, “Combining Hawthorne’s industry-leading product portfolio with Sunlight’s unparalleled distribution capabilities and complementary portfolio will benefit consumers and all stakeholders in the hydroponic marketplace. It reinforces our confidence in the future of this industry and takes Hawthorne to a new level as a business with unique competitive advantages.”