Scotts Miracle-Gro jumps into the marijuana market with deal for hydroponics company
Apr 3, 2015, 10:28am EDT UPDATED: Apr 7, 2015, 11:55am EDT
The Scotts Miracle-Gro Co. offshoot that targets young, urban gardeners has acquired a Santa Rosa, California-based hydroponics company popular with marijuana growers.
Hawthorne Gardening Co., a Scotts subsidiary formed in October, purchased General Hydroponics Inc. and Bio-Organic Solutions Inc.
Terms were not disclosed, but the acquisition should position the company in the growing marijuana market.
Jim Hagedorn, CEO of the $2.8 billion Scotts (NYSE:SMG), said in May that marijuana, which is enjoying increasing acceptance in the U.S., is an opportunity to grow revenue and attract younger customers. He’s been talking about the potential of the pot market since 2011.
General Hydroponics is “a major international supplier of liquid nutrients used to grow food, flowers and indoor marijuana,” according to the Santa Rosa Press Democrat. The company was founded 35 years ago by a medical marijuana advocate and now has manufacturing plants in California, West Virginia and France, the newspaper reported, although the founder said growing non-marijuana plants is the biggest market for the company.
High Times magazine said in a story analyzing the history of hydroponics that General Hydroponics’ plant food “ quickly became the standard for hydroponic growers and their meteoric success spawned many imitators.”
Hydroponic plants are grown without using soil.