While an official statement on the acquisition has not been published yet, Scotts Miracle-Gro mentioned the acquisition of Agrolux in a recent analysis of their financial condition and operational results. It reports increasing net sales primarily driven by the acquisition of Gavita, Botanicare and Agrolux, as well as a Canadian growing media operation.
Sources confirmed to FloralDaily that Scott Miracle-Gro's indoor gardening division Hawthorne Gardening Company indeed bought Agrolux. Details of amounts involved in the sale were not disclosed, but it is reported that Agrolux was sold for 21.8 million dollars.
Last year, Hawthorne obtained a 75% stake in Gavita for a total sum of $136M. That takeover came after several management changes at Gavita, which merged the Norway, Dutch and Canadian operations into one entity: Gavita International.
By adding Agrolux to its grow light portfolio, the Hawthorne group now has a significant, if not the biggest, stake in the global market for horticultural supplemental high pressure sodium lights and fixtures.
Gavita is an important player supplying the emerging North American cannabis movement, as well as mega-projects in the Russian greenhouse industry.
Agrolux on its turn is known as a leading supplier of lighting solutions to some of North America's and Europe's largest greenhouse produce and flower companies. Agrolux recently moved into their brand new office and warehouse space in the Netherlands.
Customers of both companies can expect to continue to receive the same service and quality as they are used to from both companies. Sources confirmed that both Gavita and Agrolux will remain separate brands and companies who will remain active on the market as independent entities.
The Hawthorne group is Scotts Miracle-Gro's division dedicated to commercial growers and entrepreneurs in the indoor gardening and controlled environment agriculture industry. In 2015, Hawthorne acquired California based General Hydroponics Inc. for about $130 million, at that time named Scotts' biggest acquisition of the last 16 years. This acquisition was much discussed online, especially in cannabis-related fora. People in that industry in particular expressed to fear a monopoly by Scotts and their Hawthorne division.
In the meanwhile Scotts Miracle-Gro is said to increase its focus on the 'indoor gardening' market. The company is known for its ownership of consumer brands like Miracle-Gro, Roundup and Fafard, but Baystreet.ca, reported last week that the company plans to sell off its consumer brands in order to increase it's focus on mergers and acquisitions related to the money-making marijuana industry.