Scotts acquires hydroponics company
Scotts Miracle-Gro Company is acquiring the assets of Sunlight Supply Inc., the largest U.S. hydroponics distributor.
Coupled with Scotts subsidiary the Hawthorne Gardening Company, which owns the hydroponic brands Gavita, Botanicare, Can-Filters, and General Hydroponics, a new distribution model will be created that reaches 1,800 hydroponic retail customers throughout the United States.
In 2017 Sunlight Supply had sales of $460 million and earnings of $55 million. Combined, Hawthorne and Sunlight Supply are expected to have annualized sales of approximately $600 million, Scotts reported.
Scotts is paying $425 million in cash and $25 million in SMG equity to Sunlight Supply in deal that is expected to close by June 1.
Sunlight Supply recently opened a state-of-the-art 350,000-square foot distribution center in Vancouver, Wash. in addition to 8 other distribution facilities it operates across North America.
“We are creating a game-changing moment for Scotts Miracle-Gro, for Hawthorne, the hydroponic products industry and the users of our products,” said 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.”
Hawthorne Gardening Co. will remain based in New York although significant operations will be consolidated in Vancouver, Washington, where Sunlight Supply is based, Scotts reported.
For fiscal 2017, Marysville, Ohio-based Scotts Miracle-Gro reported net sales of $2.64 billion.
Coupled with Scotts subsidiary the Hawthorne Gardening Company, which owns the hydroponic brands Gavita, Botanicare, Can-Filters, and General Hydroponics, a new distribution model will be created that reaches 1,800 hydroponic retail customers throughout the United States.
In 2017 Sunlight Supply had sales of $460 million and earnings of $55 million. Combined, Hawthorne and Sunlight Supply are expected to have annualized sales of approximately $600 million, Scotts reported.
Scotts is paying $425 million in cash and $25 million in SMG equity to Sunlight Supply in deal that is expected to close by June 1.
Sunlight Supply recently opened a state-of-the-art 350,000-square foot distribution center in Vancouver, Wash. in addition to 8 other distribution facilities it operates across North America.
“We are creating a game-changing moment for Scotts Miracle-Gro, for Hawthorne, the hydroponic products industry and the users of our products,” said 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.”
Hawthorne Gardening Co. will remain based in New York although significant operations will be consolidated in Vancouver, Washington, where Sunlight Supply is based, Scotts reported.
For fiscal 2017, Marysville, Ohio-based Scotts Miracle-Gro reported net sales of $2.64 billion.