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Mushroom Company Execs Join Crop One Advisory Board
Crop One Holdings, whose vertical farms company FreshBox Farms grows leafy greens, has added executives from The Giorgi Cos. Inc., parent of mushroom grower Giorgio Fresh, to its advisory board.
October 28, 2018
Crop One Holdings, whose vertical farms company FreshBox Farms grows leafy greens, has added executives from The Giorgi Cos. Inc., parent of mushroom grower Giorgio Fresh, to its advisory board.
Joe Caldwell, president of Giorgi Mushroom Co. and Giorgio Fresh, said the company is “very interested in the potential of vertical farming to transform the fresh produce industry,” in a news release.
Caldwell joined Giorgi Mushroom in 2017, after more than three decades at Monterey Mushrooms.
Brian Loiseau, senior vice president of sales, marking and research and development for Giorgio Foods Inc., also has joined Crop One’s advisory board. He has more than two decades of consumer packaged goods marketing experience, and was involved in the recent launch of Giorgio’s Savory Wild Portabella Jerky.
“We look forward to leveraging our own go-to-market experiences to help Crop One bring exceptional quality produce to everyone’s kitchen tables,” Loiseau said in the release.
ScottsMiracle-Gro to Acquire Sunlight Supply Inc.
The Scotts Miracle-Gro Company a marketer of branded consumer lawn and garden as well as hydroponic growing products, has announced it has entered into a definitive agreement to acquire the assets of Sunlight Supply Inc., in a transaction that will greatly enhance the ability of SMG’s wholly-owned subsidiary,
ScottsMiracle-Gro to Acquire Sunlight Supply Inc.
The pending acquisition of the hydroponic distributor will benefit customers while driving growth and synergies that enhance shareholder value.
April 18, 2018
MARYSVILLE, Ohio, April 17, 2018 (GLOBE NEWSWIRE) -- PRESS RELEASE --
The Scotts Miracle-Gro Company a marketer of branded consumer lawn and garden as well as hydroponic growing products, has announced it has entered into a definitive agreement to acquire the assets of Sunlight Supply Inc., in a transaction that will greatly enhance the ability of SMG’s wholly-owned subsidiary, The Hawthorne Gardening Company, to meet the needs of the rapidly evolving hydroponic products marketplace, according to a press release.
The transaction will create a direct distribution model for Hawthorne that will service more than 1,800 hydroponic retail customers throughout the United States.
Hawthorne, which had 2017 sales of approximately $290 million, owns leading hydroponic brands such as Gavita, Botanicare, Can-Filters and General Hydroponics. Sunlight Supply is the largest distributor of hydroponic products in the United States. Within the last year, Sunlight opened a state-of-the-art 350,000-square-foot distribution center in Vancouver, Wash., and has eight other distribution facilities across North America.
Among the many benefits of the transaction, Hawthorne will possess the most technologically advanced supply chain in the hydroponic supply industry. By being able to ship directly, Hawthorne will have greatly enhanced relationships with hydroponic retailers, giving it greater visibility into current market trends, retail inventory levels and point-of-sale data that will allow it to operate more effectively.
“We are creating a game-changing moment for ScottsMiracle-Gro, for Hawthorne, the hydroponic products industry and the users of our products,” said Jim Hagedorn, chairman, and CEO of ScottsMiracle-Gro. “Combining Hawthorne’s industry-leading product portfolio with Sunlight’s unparalleled distribution capabilities and complementary portfolio will benefit consumers and all stakeholders in the hydroponic marketplace. It reinforces our confidence in the future of this industry and takes Hawthorne to a new level as a business with unique competitive advantages.”
Transaction details and financial implications
In fiscal 2017, Sunlight Supply recorded sales of approximately $460 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately $55 million. On a combined basis, Hawthorne and Sunlight Supply are expected to have combined annualized sales of approximately $600 million. About 20 percent of Sunlight’s current sales come from distributing Hawthorne’s products and are therefore excluded from the annualized estimate. Additionally, both businesses are expected to see unit volume declines in 2018 due to a temporary disruption to the California marketplace.
In fiscal 2018, the transaction is expected to be dilutive by $0.30 to $0.40 per share on a non-GAAP adjusted basis. The dilution is attributable to the timing of the expected close of the deal, non-cash purchase accounting adjustments including amortization, increased deal costs, and increased interest expense.
Upon completion of the transaction, which is expected by June 1, the Company is launching an initiative it is calling ‘Project Catalyst,’ which calls for Hawthorne to achieve no less than $35 million in financial synergies by the end of fiscal 2019. The company expects to incur approximately $15-20 million in restructuring charges to achieve those synergies. Benefits from the transaction are expected to improve year-over-year non-GAAP adjusted earnings by $0.60 to $0.80 per share in fiscal 2019.
The company has set a goal for Hawthorne to achieve segment profit of approximately $120 million and operating profit margin of 17 to 18 percent by the end of fiscal 2020.
“We have been deliberate in the steps we’ve taken thus far in creating the Hawthorne portfolio and made sure not to disrupt the marketplace as we’ve grown,” Hagedorn said. “The pending acquisition of Sunlight Supply now gives us the green light to aggressively optimize the businesses we’ve acquired and create a more efficient business that better serves the needs of consumers and our customers and drives value for our shareholders.”
Terms of the transaction call for ScottsMiracle-Gro to pay $425 million in cash and $25 million in SMG equity to Sunlight Supply upon completion of the deal. The transaction, which is subject to regulatory approval, will be financed using the Company’s existing credit facility. ScottsMiracle-Gro expects to have a debt-to-adjusted EBITDA ratio slightly above 4.0 times at the completion of the transaction.
“We are extremely pleased with the financial terms of the transaction,” said Randy Coleman, chief financial officer for ScottsMiracle-Gro. “The synergies from combining the businesses makes the transaction even more financially attractive. However, purchase accounting adjustments, deal costs, and financing costs from the deal will trigger a leverage ratio higher than our previously stated goals. Because we believe a leverage ratio of 3.5 times is appropriate for our business, we will focus on returning to that level by the end of fiscal 2019. This will likely slow our share repurchase efforts for the next several quarters, although we have not changed our long-term commitment to return cash to shareholders.”
ScottsMiracle-Gro will release complete financial results for its fiscal second quarter on May 1 and expects to provide a detailed overview of the expected impact of the Sunlight Supply transaction on its 2018 financial guidance. The company currently expects it will announce that Hawthorne segment sales declined approximately 30 percent in the second quarter, including the impact of past acquisitions. The Company also anticipates reporting a 5 percent decline in second-quarter sales for its U.S. Consumer segment as extremely unseasonable weather has delayed the start of the lawn and garden season in many key U.S. markets.
“The entire hydroponic industry continues to see pressure on sales due to the recent regulatory changes in California,” Hagedorn said. “We now expect the challenges in California to continue throughout the balance of fiscal 2018. Because our long-term optimism about this category is unchanged, however, we see no reason for these near-term challenges to delay the implementation of our strategy.”
Combination creates benefits for the hydroponic growing supply industry
The combination of Hawthorne and Sunlight Supply will create immediate benefits for consumers, retailers, and vendors throughout the hydroponic products industry. Upon completion of the acquisition, Hawthorne will have a fully vertically integrated operating model that will ship directly to retailers, providing unmatched capabilities in the industry. The Company believes the transaction will make Hawthorne the preferred distributor for the majority of other manufacturers in this space.
Synergies from the transaction will allow Hawthorne to invest in improved service, more attractive promotional programs for its retail partners, as well as benefit consumers with unique R&D efforts to improve the effectiveness of hydroponic growing products.
“In deciding to join forces with Hawthorne we were seeking a partner who shared our long-term optimism for this industry and was focused on further improving the experience for our retail dealers and current vendors,” said Craig Hargreaves, founder, and CEO of Sunlight Supply. “This is an innovative and smart combination that allows our industry to take a giant step forward and benefits consumers and all of Sunlight’s current stakeholders. We are truly excited to become part of the ScottsMiracle-Gro family and to partner with Hawthorne in creating the most important company in the hydroponic products industry.”
Business operations and leadership team
Hawthorne Gardening Co. will remain based in New York although significant operations will be consolidated in Vancouver, Washington, where Sunlight Supply is based and recently opened a world-class and fully automated manufacturing and distribution facility. Chris Hagedorn will continue to serve as general manager of Hawthorne. Doug Hargreaves, currently executive vice president at Sunlight Supply, is expected to be the lead of operations at Hawthorne upon completion of the deal. Craig Hargreaves is also expected to join ScottsMiracle-Gro in a highly visible capacity upon completion of the deal that allows him to influence Hawthorne’s long-term strategy.
“Craig and Doug Hargreaves are not just seasoned business operators, but are among the most respected people in the U.S. hydroponic industry today,” Hagedorn said. “Completing this deal was contingent on both of them joining our team. I welcome them and the entire Sunlight team as we begin this exciting new chapter.”
Wells Fargo Securities acted as financial advisor to ScottsMiracle-Gro in connection with this transaction.
Green Spirit Hydroponics: The UK's Leading Hydroponics Supplier
Hydroponics is an indoor growing method that is growing more and more in popularity each and every day, and the company at the center of all the fuss is Green Spirit Hydroponics.
Green Spirit Hydroponics: The UK's Leading Hydroponics Supplier
This press release was originally distributed by SBWire
Sheffield, England -- (SBWIRE) -- 03/15/2018
Hydroponics is an indoor growing method that is growing more and more in popularity each and every day, and the company at the center of all the fuss is Green Spirit Hydroponics. With a wealth of hydroponics companies and website available for people to choose from we thought that we would look into why Green Spirit Hydroponics is most possibly more popular than any other hydroponics company in the UK, and our findings were as follows:
Green Spirit Hydroponics offer a price match guarantee, meaning that their prices cannot be beaten
Green Spirit Hydroponics offer personalized quotes, enabling people to save money when spending large amounts of equipment
Green Spirit Hydroponics team are experts in hydroponics meaning that they hold a lot of knowledge and can advise and guide wisely
Green Spirit Hydroponics offer fantastic customer support, both when purchasing and ongoing
Green Spirit Hydroponics offer one of the widest ranges of hydroponics supplies, enabling customers to buy everything that they need in one place
A spokesperson and representative from the company was incredibly keen to comment saying, "Incredibly passionate about hydroponic growing here at Green Spirit Hydroponics we try to be as helpful as possibly, not only striving to sell a wide range of hydroponics equipment at low prices, but also ensuring that we are able to guide our customers into making the most out of the products that they purchase from us."
About Green Spirit Hydroponics
Green Spirit Hydroponics is a leading provider of hydroponics equipment and supplies, offering everything that is needed for people to grow hydroponically in the comfort of their own homes. From complete hydroponics growing kits, to individual hydroponics items, whatever you are looking for, if it is hydroponic related, they are bound to be able to assist you.
For full company details and to browse their vast and impressive hydroponic collections do not hesitate to visit their website today: https://www.greenspirit-hydroponics.com/.
PR Contact
Company Name: Green Spirit Hydroponics
Website URL: http://www.greenspirit-hydroponics.com/
Contact Name: Samuel Bullivant
Contact Number: 0114 2753353
Contact Email: sam@greenspirit-hydroponics.com
Address: 230 Unit 5 Woodbourn Road Sheffield S93LQ
For more information on this press release visit: http://www.sbwire.com/press-releases/green-spirit-hydroponics-the-uks-leading-hydroponics-supplier-948912.htm
Media Relations Contact
Samuel Bullivant
Green Spirit Hydroponics
Telephone: 0114 2753353
Email: Click to Email Samuel Bullivant
Web: http://www.greenspirit-hydroponics.com/
Read more: http://www.digitaljournal.com/pr/3696681#ixzz59sUtoUhQ