ScottsMiracle-Gro Exercises Outstanding Warrants to Achieve 80% Beneficial Ownership Stake of AeroGrow International
November 30 2016 - 8:45AM
The Scotts Miracle-Gro Company (NYSE:SMG), the world’s leading
marketer of branded consumer lawn and garden products, today
announced that SMG Growing Media, Inc., an indirect wholly-owned
subsidiary, has exercised its current outstanding warrants to
establish an 80 percent ownership stake in AeroGrow International,
Inc. (OTCQB:AERO).
The Company, through its subsidiary, established an
approximately 31 percent stake in AeroGrow in 2013. Since that
time, the business has demonstrated strong and consistent growth
with a leading line of consumer indoor gardening systems. The
Company’s involvement in AeroGrow is managed within its
wholly-owned subsidiary, The Hawthorne Gardening Company.
Under terms of the transaction, approximately 21.6 million
shares of AeroGrow were issued to ScottsMiracle-Gro for $47.8
million. AeroGrow separately announced today that its Board of
Directors has declared a $41 million distribution, equivalent to
$1.21 per share, payable Jan. 3, 2017. In addition, AeroGrow is
expected to repay ScottsMiracle-Gro a roughly $5.25 million loan
used for working capital purposes.
The net cash outlay for ScottsMiracle-Gro related to the
transaction is approximately $9 million.
With the increased ownership position, three members of the
ScottsMiracle-Gro team will now sit on the 5-member AeroGrow board,
including Chris Hagedorn, general manager of The Hawthorne
Gardening Company, who also will be chairman of the AeroGrow board.
Michael Wolfe will remain in his capacity as president and CEO of
AeroGrow. “Our investment and work with AeroGrow has benefited both
companies, and we continue to see great potential for indoor
gardening going forward,” said Jim Hagedorn, chairman and CEO of
ScottsMiracle-Gro. “We’re pleased to maintain key members of the
management team, excited by their pipeline of new products, and we
look forward to even greater results going forward.”
About ScottsMiracle-Gro The Scotts
Miracle-Gro Company is the world’s largest marketer of branded
consumer products for lawn and garden care. The Company’s
brands are the most recognized in the industry. In the U.S.,
the Company’s Scotts®, Miracle-Gro® and Ortho® brands are
market-leading in their categories, as is the consumer Roundup®
brand, which is marketed near worldwide by Scotts and owned by
Monsanto. In the U.S., we maintain a minority interest in
TruGreen®, the largest residential lawn care service business, and
in Bonnie Plants®, the largest marketer of edible gardening plants
in retail channels. In Europe, the Company’s brands include
Weedol®, Pathclear®, Evergreen®, Levington®, Miracle-Gro®, KB®,
Fertiligène® and Substral®. For additional information, visit us
at www.scotts.com.
Contact:
Jim King
Senior Vice President
Investor Relations & Corporate Affairs
(937) 578-5622
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