Traditional gardening-supply company Scotts Miracle-Gro announced recently that it has signed an agreement to purchase Sunlight Supply, a privately held company that distributes gardening supplies.
The significant of this agreement is that Sunlight Supply has a top spot in the segment of U.S. hydroponics which has been a popular method for growing marijuana.
Scotts Miracle-Gro has agreed to pay a total of $450 million for Sunlight Supply, with $425 million in cash and the remainder in equity. Upon the deal’s completion, Sunlight Supply will be folded into its new owner’s Hawthorne Gardening unit, the division that holds its hydroponic assets and other goods that are associated with marijuana cultivation.
By the two companies combining, the company expects annual sales of around $600 million.
