A single droplet of water hangs suspended from the underside of a grass blade.


ScottsMiracle-Gro is set to acquire Sunlight Supply Inc., the nation’s largest hydroponic distributor, which would see annualized sales of about $600 million and directly serve more than 1,800 hydroponic retail stores in North America.

In 2016, Scotts acquired a 75 percent stake in Dutch hydroponics firm Gavita Holland BV in a $136 million deal.

According to a press release, the transaction will “greatly enhance” the ability of Scotts wholly-owned subsidiary Hawthorne Gardening Company “to meet the needs of the rapidly evolving hydroponics products marketplace.”

Hawthorne owns Gavita, Botanicare, Can-Filters, and General Hydroponics. In 2017, Hawthorne’s sales were about $290 million.

Jim Hagedorn, Scotts chairman and CEO, called the transaction “game-changing.”

“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.” – Hagedorn in a statement

In fiscal year 2017, Sunlight recorded sales of $460 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $55 million.

“The pending acquisition of Sunlight Supply now gives us the green light to aggressively optimize the businesses we’ve acquired and create a more efficient business that better serves the needs of consumers and our customers and drives value for our shareholders.” – Hagedorn in a statement

The deal, which is expected to close June 1, is worth $425 million in cash and $25 million in Scotts equity.

Get daily news insights in your inbox. Subscribe


Latest Cannabis News

View all news