Miracle-Gro just doesn’t sell like it used to — which is OK with the legacy fertilizer’s parent company, because it’s diversified to cannabis.
And gardening aid giant Scotts Miracle-Gro’s big bet on cannabis legalization just keeps getting bigger.
Last year, the well-known fertilizer company turned heads when CEO Jim Hagedorn followed up on a vow to enter the indoor-growing game and invested $135 million in two California companies that specialize in cannabis cultivation supplies — its biggest investment in 16 years.
In 2016, Hagedorn added, the company would invest another $150 million into the marijuana sector — and on Monday, Miracle-Gro partially made good on that promise.
This week, Scotts Miracle-Gro announced the purchase of Botanicare, an Arizona-based supplier of plant nutrients and hydroponics, the Cannabist reported. That company has done about $40 million in sales, the website reported, which puts it well in line with Hagedorn’s vision — which is, as he put it, taking “advantage of something that’s high margin, high growth.”
Through a company subsidiary called Hawthorn Gardening Co., Miracle-Gro bought out California-based General Hydroponics for $130 million. That company is expected to exceed $250 million in sales, Hagedorn said.
What’s next? As the Cannabist points out, Scotts Miracle-Gro is based in Ohio, which just legalized medical marijuana. Hagedorn told investors and hydroponics companies in a conference call that he plans to slow down on new purchases and focus on “support for sales, research and development and supply chain,” the Cannabist wrote, but don’t be surprised if the company decides to keep growing.
What do you think? Is this good for the marijuana industry?