Vireo Growth Acquires Hawthorne Gardening for $110M

Vireo Growth Inc. has completed its acquisition of The Hawthorne Gardening Company LLC from The Scotts Miracle-Gro Company. The transaction strengthens Vireo’s balance sheet with approximately US$110 million of combined cash and net working capital.

Vireo acquired US$35 million of cash held by Hawthorne, approximately US$58 million of net working capital, and US$20 million of inventory (primarily growing media) to be supplied over two years. Consideration includes 213 million subordinate voting shares of Vireo at a deemed price of US$0.60 and a warrant to purchase 80 million shares at a US$0.85 strike price, exercisable for five years. Vireo also nominated Scotts Miracle-Gro EVP Chris Hagedorn to its board.