Vireo Growth has entered into a nonbinding memorandum of understanding with The Scotts Miracle-Gro Co. to acquire The Hawthorne Gardening Co., an independent operating subsidiary of Scotts Miracle-Gro and provider of nutrients, lighting and other materials used for indoor and hydroponic gardening in North America.
Vireo CEO John Mazarakis said, "We've valued our working relationship with Scotts Miracle-Gro and the Hawthorne team, and they have been excellent to work with throughout our discussions. This proposed transaction builds on a foundation of mutual respect and trust developed over time."
Vireo intends to name Chris Hagedorn, executive vice president of Scotts Miracle-Gro and executive lead of the Hawthorne business, to its board of directors upon completion of the transition.
"We're pleased to deepen our relationship through closer collaboration with Scotts Miracle-Gro and by welcoming Chris to our board," Mazarakis said. "Our focus now is on executing thoughtfully and responsibly in a way that reflects the expectations of a partner of this caliber as we move toward closing."
Jim Hagedorn, chairman and CEO of Scotts Miracle-Gro, said, "Through Hawthorne, we have spent years operating alongside the cannabis industry and working with a wide range of operators across markets, cycles and business models. That experience has given us a clear view of what does and does not create durable value over time.
"After evaluating our strategic options, we concluded the most compelling path forward for our shareholders is to transition to an equity participation arrangement with Vireo. Vireo is well-capitalized and has a strong platform and operating approach to be a market leader in the cannabis space. We have found a good home for Hawthorne that aligns with our interests while enabling us to sharpen the focus on our core business."
For more information:
Vireo
Email: [email protected]
vireohealth.com
