Scotts Miracle-Gro (SMG) Unit Exercises Options to Take Stake in AeroGrow (AERO) Up to 80%
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
The Scotts Miracle-Gro Company (NYSE: SMG) 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. (OTC: 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.”
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Neovasc (NVCN) Agrees to Sell Tissue Processing Tech to Boston Scientific (BSX) in $75M Deal
- Boston Scientific (BSX) Accquires Certain Assets, 15% Equity Stake in of Neovasc (NVCN) for $75M
- PICO Holdings (PICO) Announces Leadership, Governance Changes; Terminates Central Square Agreement
Create E-mail Alert Related CategoriesCorporate News, Management Comments, Mergers and Acquisitions
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!