Scotts Miracle-Gro captures Sunlight
The Scotts Miracle-Gro Company has completed the acquisition of the assets of Sunlight Supply, Inc., enhancing the ability of SMG’s wholly-owned subsidiary, The Hawthorne Gardening Company.
The move is expected to strengthen Scotts and the Hawthorne Gardening Company’s foothold in the hydroponic products marketplace.
Hawthorne had 2017 sales of approximately $290 million and owns several hydroponic brands including Gavita, Botanicare, Can-Filters, and General Hydroponics. Sunlight Supply is the largest U.S. distributor of hydroponic products and had sales of $460 million in 2017.
“This is an important and transformational moment for Hawthorne, for Sunlight and for hydroponic retailers and vendors everywhere,” said Jim Hagedorn, chairman and CEO of ScottsMiracle-Gro. “This combination reinforces our confidence in the future of hydroponic growing and creates unique competitive advantages for Hawthorne that we believe will take the industry to a new level.”
According to Scotts, the Marysville, Ohio-based company is paying $425 million in cash and $25 million in equity for the purchase.
Scotts also announced it has formally launched ‘Project Catalyst,’ which it expects will achieve $35 million in annual synergies for Hawthorne by the end of calendar 2019.
“We will move with both focus and urgency to achieve the synergies we have outlined and strengthen Hawthorne’s financial performance,” said Randy Coleman, Scott’s CFO. “We remain bullish on the long-term prospects for the hydroponic growing industry and Hawthorne’s strengthened leadership position, but we also know we must deliver improved results as a result of the capital that has been dedicated to this effort.”
The move is expected to strengthen Scotts and the Hawthorne Gardening Company’s foothold in the hydroponic products marketplace.
Hawthorne had 2017 sales of approximately $290 million and owns several hydroponic brands including Gavita, Botanicare, Can-Filters, and General Hydroponics. Sunlight Supply is the largest U.S. distributor of hydroponic products and had sales of $460 million in 2017.
“This is an important and transformational moment for Hawthorne, for Sunlight and for hydroponic retailers and vendors everywhere,” said Jim Hagedorn, chairman and CEO of ScottsMiracle-Gro. “This combination reinforces our confidence in the future of hydroponic growing and creates unique competitive advantages for Hawthorne that we believe will take the industry to a new level.”
According to Scotts, the Marysville, Ohio-based company is paying $425 million in cash and $25 million in equity for the purchase.
Scotts also announced it has formally launched ‘Project Catalyst,’ which it expects will achieve $35 million in annual synergies for Hawthorne by the end of calendar 2019.
“We will move with both focus and urgency to achieve the synergies we have outlined and strengthen Hawthorne’s financial performance,” said Randy Coleman, Scott’s CFO. “We remain bullish on the long-term prospects for the hydroponic growing industry and Hawthorne’s strengthened leadership position, but we also know we must deliver improved results as a result of the capital that has been dedicated to this effort.”