Scotts Miracle-Gro has agreed to acquire Sunlight Supply Inc., with the intention of turning Scotts Miracle-Gro’s subsidiary The Hawthorne Gardening Company into a hydroponic supply powerhouse, according to an April 17 press release. It’s the largest deal in the company’s history.
Sunlight Supply Inc. was purchased for $450 million—with an eye-popping $425 million in cash and the remaining $25 million in stock.
This agreement will set up The Hawthorne Gardening Company to serve over 1,800 hydroponic supply retail customers across the United States. Currently, the hydroponic supply brands Gavita, Botanicare, Can-Filters, and General Hydroponics are all owned by The Hawthorne Gardening Company.
“We are creating a game-changing moment for Scotts Miracle-Gro, for Hawthorne, the hydroponic products industry and the users of our products,” stated Jim Hagedorn, chairman and CEO of Scotts Miracle-Gro. “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.”
The symbiotic relationship between Scotts Miracle-Gro and the cannabis industry is no secret and is nothing new. The company has an endless list of nutrient mixes, some of which are suitable for cannabis, and the company sees an uptick in sales every time a new cannabis law is implemented.
This move will put The Hawthorne Gardening Company in a position to be the most technologically advanced supply company in the cannabis hydroponics industry. While Hawthorne’s sales dropped about 30 percent from January to March due to dramatic regulatory changes in California, the company has high hopes for sales after this deal.
Sunlight Supply Inc. is based out of Marysville, Ohio and has nine distribution facilities across the U.S. The deal is expected to double the company’s sales to cannabis growers, according to Bloomberg.
The acquisition is expected to close before June 1.