Scotts Miracle-Gro Pays $77 Million for Botonicare
Last August, Scotts Miracle-Gro’s hydroponics subsidiary Hawthorne Gardening agreed to a deal to purchase Arizona-based Botonicare. Terms of the deal were not disclosed at the time, however, SEC filings have just revealed that Scotts paid $77.1 million, plus possible additional payments of up to $15.5 million based on hitting financial projections.
Botanicare has been a leader in the plant nutrient business for two decades – recording roughly $40 million in annual sales – and are the latest company to be acquired by Scotts in the hydroponic space. Scotts – the 2.84 billion lawn and garden behemoth – recently paid $136 million for Dutch grow light company Gavita, and $130 million for California’s General Hydroponics. Scotts also invested in Boulder-based AeroGrow indoor gardening company.
The flurry of deal activity comes as large companies likes Scotts Miracle-Gro jockey for position in an industry expected to flourish as more states allow for the recreational growing and consumption of marijuana. After all of the latest deals, Scotts (NYSE: SMG) has positioned itself to be a key beneficiary. Meanwhile, smaller companies have seen big paydays as the bigger players continue their buying spree before the marijuana industry hits primetime.
Botanicare’s founder Treg Bradley stated “I recognize that there is a consolidation happening in the hydroponic industry. As a first wave founder, one must know when to step aside and pass the baton to someone who has the passion, vision and insurmountable resources to take the company to the next level.”
Who will be next?