The Scotts Miracle-Gro Co., Marysville, Ohio, reported the purchase of HydroLogic Purification Systems, Santa Cruz, Calif., a provider of products, accessories, and systems for water filtration and purification in the cannabis industry. HydroLogic will expand Scotts’ Hawthorne Gardening Co. signature brand portfolio with water filtration and purification products. The company said commercial growers comprise approximately half of HydroLogic sales and typically require custom builds for their water purification and filtration needs.
Under the terms of the deal, Hawthorne will acquire the business assets and operations of HydroLogic for $65 million. Hawthorne intends to retain the Santa Cruz facility, which includes distribution and assembly. Scotts said it expects to add $20 million in annualized sales from the purchase.
“This is a small but strategic acquisition that strengthens our portfolio of signature brands and our relationship with commercial growers,” said Jim Hagedorn, Scotts CEO and Chairman. “We continue to pursue an active pipeline of M&A opportunities for both Hawthorne and our U.S. Consumer business, and are optimistic we’ll have other transactions to announce in the months ahead.”
The target date for completion of the purchase is Aug. 27, 2021.