ScottsMiracle-Gro to acquire Sunlight Supply

Scotts Miracle-Gro has entered into a definitive agreement to acquire the assets of Sunlight Supply, in a transaction that will greatly enhance the ability of SMG’s wholly-owned subsidiary, The Hawthorne Gardening Company, to meet the needs of the rapidly evolving hydroponic products marketplace.

The transaction will create a direct distribution model for Hawthorne that will service more than 1,800 hydroponic retail customers throughout the United States.

Hawthorne, which had 2017 sales of approximately $290 million, owns leading hydroponic brands such as Gavita, Botanicare, Can-Filters, and General Hydroponics. Sunlight Supply is the largest distributor of hydroponic products in the United States. Within the last year, Sunlight opened a state-of-the-art 350,000-square foot distribution center in Vancouver, Washington and has eight other distribution facilities across North America.

Among the many benefits of the transaction, Hawthorne will possess the most technologically advanced supply chain in the hydroponic supply industry. By being able to ship directly, Hawthorne will have greatly enhanced relationships with hydroponic retailers, giving it greater visibility into current market trends, retail inventory levels and point-of-sale data that will allow it to operate more effectively.

“We are creating a game-changing moment for ScottsMiracle-Gro, for Hawthorne, the hydroponic products industry and the users of our products,” said Jim Hagedorn, chairman and CEO of ScottsMiracle-Gro. “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.”

Check out the full details of the acquisition here.