Scotts Miracle-Gro To Acquire Rhizoflora's Cannabis Nutrients Business For $33.5M

Scotts Miracle-Gro SMG announced Monday that it has acquired Rhizoflora’s leading nutrients business including its Terpinator and Purpinator brands, further bolstering the Hawthorne Gardening Company's product portfolio.

Separately, the company announced that its subsidiary, The Hawthorne Collective, has purchased a warrant to buy equity in Dewey Scientific for $3.2 million, which will help advance Dewey’s industry-leading cannabis genomics and cultivation. The investment from the Hawthorne Collective will be used only for purposes permitted by applicable laws of the United States.

Hawthorne Becomes A Primary Provider Of Rhizoflora’s Terpinator And Purpinator Brands

Under the terms of the Rhizoflora deal, the Company will acquire substantially all the assets of Rhizoflora for $33.5 million, adding approximately $8 million in annualized sales.

Acquiring the Terpinator and Purpinator brands will extend the Hawthorne Signature Nutrients portfolio into supplements that are being rapidly adopted as the industry standard to fully express plant characteristics. Hawthorne will increase marketing and sales efforts around the brands to support the Hawthorne 360 Total Solution for growers.

“This acquisition reflects our broader strategy to build the most comprehensive portfolio of products and solutions to serve growers at an unparalleled scale,” said Chris Hagedorn, Hawthorne Gardening division president. “We appreciate our long-standing partnership with Rhizoflora and look forward to elevating the brands, including bringing Terpinator and Purpinator to expanded markets.”

The Rhizoflora acquisition follows the recent announcement of plans to acquire Hydro-Logic Purification Systems, Inc., a leading provider of products, accessories and systems for water filtration and purification, with a targeted closing date of August 27.

Hawthorne Collective Investment Expands R&D Relationship With Dewey

Dewey Scientific leverages genomics, data science and classical breeding methods to improve the quality and genetic diversity of cannabis crops in the Pacific Northwest.

“Dewey Scientific is continuously evolving our mission to apply pristine breeding principles and the latest genomics technology to develop genetically stable hybrid seed for healthier and more consistent cannabis crops,” said CEO and co-founder Jordan Zager, Ph.D.

Through Hawthorne Collective funding, Dewey will expand that reach, further refine its cultivation practices and work with a wider net of cultivators and partners to deliver higher-yielding crops.

Price Action 

Scotts Miracle-Gro’s shares were trading 1.25% lower at $151.24 per share at the time in this writing Tuesday late morning. 

Photo: Courtesy of Diyahna Lewis on Unsplash