MARYSVILLE, Ohio, May 31 /PRNewswire-FirstCall/ -- The Scotts Miracle-Gro Company , the world's leading marketer of branded products for consumer lawn and garden care, has completed the acquisition of certain brands and assets from Turf-Seed, Inc., a leading producer of quality commercial turfgrasses for more than 35 years.
"The addition of Turf-Seed's leading brands to the ScottsMiracle-Gro family brings together two market-leading organizations focused on growth and innovation," said Jim Hagedorn, chairman and chief executive officer of ScottsMiracle-Gro. "Turf-Seed has extensive expertise in the professional seed business, a strong sales force, as well as a deep commitment to turfgrass research and development."
The Hubbard, Oregon-based Turf-Seed, Inc. is a recognized pioneer and leader in the professional turfgrass seed business. The company maintains the most advanced privately owned turfgrass breeding and development facility in the U.S. This operation is known for the development of new turfgrass species, including disease resistant and genetically modified varieties.
Landscape professionals in North America, Europe and Asia have made Turf- Seed a market leader due to its high quality and variety of brands. By integrating Turf-Seed's extensive professional seed sales and distribution network with ScottsMiracle-Gro's existing presence and industry leading brands in the consumer seed market, ScottsMiracle-Gro will strengthen its overall global position in the seed category. The transaction also includes a partnership with Turf-Seed Europe, which distributes Turf-Seed's grass varieties throughout the European Union and other countries in the region.
Mark Schwartz, senior vice president and general manager, grass seed, for ScottsMiracle-Gro, will lead the combined seed business. Bill Rose, Turf-Seed, Inc. founder, will serve as chairman of the Scotts Grass Seed Advisory Council. The Council will help guide the grass seed business and provide strategic direction in the area of new innovations and marketing initiatives.
"This is a very exciting union of two companies that maintain the same philosophies on the importance of turfgrass and its role in the health of the environment," said Rose. "We look forward to joining the ScottsMiracle-Gro team and advancing the business."
Under the agreements, Scotts acquires certain assets of Turf-Seed, including its brands, turfgrass varieties and intellectual property. Scotts also enters into a multi-year collaboration, including relationships with several entities controlled by Rose. These agreements include Pure Seed Testing, Inc., Roselawn Seed, Inc. and Rose Agri-Seed, Inc. The purchase price for Turf-Seed's assets and payments, under the six-year term agreements, is expected to total approximately $30 - 35 million.
About ScottsMiracle-Gro
With more than $2.3 billion in worldwide sales and more than 6,000 associates, The Scotts Miracle-Gro Company, through its wholly-owned subsidiary, The Scotts Company LLC, is the world's largest marketer of branded consumer products for lawn and garden care, with products for professional horticulture as well. The Company's brands are the most recognized in the industry. In the U.S., the Company's Scotts(R), Miracle-Gro(R) and Ortho(R) brands are market-leading in their categories, as is the consumer Roundup(R) brand, which is marketed in North America and most of Europe exclusively by Scotts and owned by Monsanto. The Company also owns Smith & Hawken, a leading brand of garden-inspired products that includes pottery, watering equipment, gardening tools, outdoor furniture and live goods. Additionally, the Company owns Scotts LawnService, a provider of residential lawn care, and Morning Song(R), a leading brand in the wild bird food category. In Europe, Scotts' brands include Weedol(R), Pathclear(R), Evergreen(R), Levington(R), Miracle- Gro(R), KB(R), Fertiligene(R) and Substral(R). For additional information, visit us at http://www.scotts.com/.
Statement under the Private Securities Litigation Act of 1995: Certain of the statements contained in this press release, including, but not limited to, information regarding the future economic performance and financial condition of the company, the plans and objectives of the company's management, and the company's assumptions regarding such performance and plans are forward looking in nature. Actual results could differ materially from the forward-looking information in this release, due to a variety of factors, including, but not limited to:
- Adverse weather conditions could adversely affect our sales and
financial results;
- Our historical seasonality could impair our ability to pay obligations
as they come due and operating expenses;
- Our substantial indebtedness could adversely affect our financial
health;
- Public perceptions regarding the safety of our products could adversely
affect us;
- The loss of one or more of our top customers could adversely affect our
financial results because of the concentration of our sales to a small
number of retail customers;
- The expiration of certain patents could substantially increase our
competition in the United States;
- Compliance with environmental and other public health regulations could
increase our cost of doing business; and
- Our significant international operations make us more susceptible to
fluctuations in currency exchange rates and to the costs of
international regulation.
Additional detailed information concerning a number of the important factors that could cause actual results to differ materially from the forward- looking information contained in this release is readily available in the company's publicly filed quarterly, annual and other reports.
