In an effort to increase its foothold in the growing marijuana industry, Scotts Miracle-Gro is buying the largest distributor of hydroponics products in the country.
The Marysville-based company plans to spend about $450 million to purchase Sunlight Supply Incorporated, which is based in Vancouver, Washington.
Scotts hopes to meet the needs of the rapidly evolving hydroponic marketplace, which uses products grown in water without soil. It’s a process common for marijuana plants that are grown indoors for security and other reasons.
Business is booming as more states legalize marijuana for medical and recreational purposes. It’s estimated legal marijuana sales totaled about $9.7 billion in the U.S. and Canada last year.
But in California, a new licensing system has slowed sales of hydroponics systems.
Still, Scotts CEO, Jim Hagedorn says he sees no reason to delay the company’s strategy and he calls the purchase a “game-changing moment.”
Ohio's medical marijuana program is set to kick off in September, although not all businesses are expected to be ready by the deadline.
