Scotts Miracle-Gro keeps on growin’
The Scotts Miracle-Gro Company announced it has acquired Luxx Lighting for $215 million in a transaction that significantly strengthens its subsidiary Hawthorne Gardening Company’s lighting portfolio.
The Company also said it has acquired, for $10 million, True Liberty Bags, the industry’s provider of liners and storage solutions to dry and cure plant products.
“These strategic acquisitions reinforce our commitment to provide commercial cannabis cultivators in state-authorized markets with a complete set of solutions driven by insight and innovation,” said Chris Hagedorn, division president of Hawthorne.
“While the cannabis market continues to see near-term challenges from an over-production in recent months, we see the current reality as an opportunity to further distance ourselves from the competition and strengthen our business for long-term success,” said Hagedorn.
“The True Liberty transaction gives us our first offering in this niche market, however, the acquisition of Luxx bolsters a lighting portfolio that is now several times larger and more diverse than our nearest competitor,” said Hagedorn.
“Luxx has deep roots in the cannabis industry with lights that were designed, tested and refined in collaboration with the team at Jungle Boys, a company run by a group of some of the best cannabis cultivators in the world. We look forward to an ongoing relationship with Jungle Boys to support the sales and marketing efforts of the Luxx brand,” said the Hawthorne division president.
Luxx joins a product lineup that also includes the Gavita and Sun System brands and provides the opportunity for significant cost synergies and process improvements across the portfolio that will be disclosed in greater detail in the weeks ahead, Hagedorn said.
Hawthorne, which previously did not distribute Luxx, will expand the marketing and distribution of the brand in emerging markets, including the East Coast.
True Liberty introduced storage solutions directly to the hydroponic market, developing a full offering of liners and storage solutions to dry and cure plant products. Hawthorne has been the primary U.S. provider of True Liberty brands, which expands Hawthorne’s harvest portfolio.
With approximately $4.9 billion in sales, Marysville, Ohio-based Scotts Miracle-Gro is one of the world’s largest marketers of branded consumer products for lawn and garden care. The company’s wholly owned subsidiary, Hawthorne Gardening Company, is a leading provider of nutrients, lighting and other materials used in the indoor and hydroponic growing segment.