Scotts Miracle-Gro to acquire hydroponics supplier Sunlight Supply
Scotts Miracle-Gro Co. announced plans late Tuesday to acquire Sunlight Supply Inc., a hydroponics supplier, for $450 million in cash and stock. Sunlight Supply logged fiscal 2017 sales of $460 million and earnings before interest, taxes, depreciation and amortization of $55 million, Scotts said. Scotts Miracle-Gro has significant exposure to the cannabis industry, as several of its products are used by marijuana cultivators. Hydroponics equipment, similar to what Sunlight Supply makes, also can be used by cannabis companies to grow the plant. Combined with Scotts’ hydroponics unit Hawthorne Gardening, the new unit will have a total of $600 million in annual sales, Scotts said. “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,” said Scotts Chief Executive Jim Hagedorn. Scotts stock is flat after hours and closed up 1.4% to $85.14 during Tuesday’s regular session. The law and garden-care company’s stock has fallen 20% this year, as the S&P 500 index has gained a fraction.
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