DivestmentApr 9, 2026, 08:31 AM
Scotts Miracle-Gro Divests Hawthorne Business to Vireo Growth for 213 Million Vireo Shares and Warrants
AI Summary
The Scotts Miracle-Gro Company, through its wholly-owned subsidiary SMG Growing Media LLC, has completed the divestiture of its Hawthorne business to Vireo Growth Inc. The transaction, which closed on April 8, 2026, involved SMG receiving 213 million subordinate voting shares in Vireo and warrants to acquire an additional 80 million Vireo Shares. This strategic move follows the Company's decision to classify Hawthorne as a discontinued operation effective in its first quarter of fiscal 2026, signaling a focus on its core operations. Hawthorne specializes in providing nutrients, lighting, and other materials for indoor and hydroponic gardening across North America.
Key Highlights
- The Scotts Miracle-Gro Company (SMG) divested its Hawthorne business, which focuses on indoor and hydroponic gardening supplies, to Vireo Growth Inc.
- SMG's subsidiary, SMG Growing Media LLC, received 213 million subordinate voting shares in Vireo Growth Inc. as part of the consideration.
- Additionally, SMG obtained warrants to acquire 80 million additional Vireo Growth Inc. shares.
- The transaction closed on April 8, 2026, substantially simultaneously with the signing of the Securities Purchase Agreement.
- Hawthorne had been classified as a discontinued operation by SMG effective in its first quarter of fiscal 2026, prior to this divestiture.