Scotts acquires Canadian moss company

The Scotts Miracle-Gro Company has acquired Fafard and Brothers via its indirect subsidiary, Scotts Canada.

Quebec-based Fafard is a producer of peat moss and high-performance growing media products, such as peat-based and bark-based mixes, composts and premium soils. It also distributes various fertilizers, mulch and grass seed products.

"Acquiring Fafard will allow us to further strengthen our North America competitiveness," said Jim Hagedorn, chairman and CEO of Scotts Miracle-Gro. "Leveraging the expertise Fafard has developed over the years, as well as its significant capacity for peat, will enable the continued growth of our Canadian business, while providing a valuable input in our growing media global supply chain."

Fafard serves both the retailer and professional grower markets, with customers primarily spanning the Ontario, Quebec and New Brunswick regions.

"The Fafard family is pleased with today's announcement and believes this transaction provides the best opportunity to drive long-term growth," said Fafard president Martin Fafard. "Both our companies have the same relentless commitment to providing the best service to our customers. This deal will allow Fafard to further develop its leadership across distribution channels, as well as leverage Scotts' world-class supply chain, research and development and marketing capabilities."

The deal is expected to add annual sales of approximately $40 million to Scotts' coffers and is projected to be accretive to earnings in fiscal 2015.