CLEVELAND, April 20, 2018 /PRNewswire-USNewswire/ -- On April 17, Scotts Miracle-Gro (NYSE:SMG) agreed to acquire Sunlight Supply Incorporated (Marysville OH), the top US distributor of hydroponics products, for $450 million. This deal, which is expected to close by June 1, will be Scotts Miracle-Gro's largest transaction to date.
Sunlight Supply will be combined with Scotts' Hawthorne Gardening subsidiary, boosting annual sales in that unit from $290 million to about $600 million. This transaction is part of Scotts' ongoing efforts to develop market positioning in the rapidly growing recreational and medicinal cannabis industries.
According to Freedonia Group analyst Jennifer Mapes-Christ, "Demand for most types of lawn and garden equipment in the US is relatively well established. However, a variety of opportunities remain, one of which is hydroponics. For instance, demand for lawn and garden cutting tools is being aided by increasing sales of snips, which are widely used in hydroponic gardening."
Furthermore, she notes, "Gardening, in general, is another opportunity as the lawn and garden industry is supported by rising interest in both decorative and edible gardening. About 30%, or 72 million, of adults in the US say they gardened in 2017. Although baby boomers and seniors participated at the highest rate, access to community gardens, interest in local foods, and changing regulations surrounding cannabis are bringing in more young people."
Mapes-Christ adds, "A plurality of respondents to our survey agreed that lawn care and gardening is fun, important to maintaining a home's value, and both relaxing and good exercise, marking these as key themes to the lawn and garden industry."
Additional analysis of the US lawn and garden product market can be found in the following Freedonia reports: Lawn & Garden Hand Tools & Wheeled Implements in the US, Lawn & Garden Watering Equipment in the US, Lawn & Garden Consumables in the US, Power Lawn & Garden Equipment in the US, and Landscaping Products in the US. For more information on these and other studies, please see Freedonia's Consumer Goods segment.
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