Scotts Miracle-Gro Company (The): ScottsMiracle-Gro to Acquire Black Kow in Alignment with SMG 2.0 Growth Strategy

MARYSVILLE, Ohio, Sept. 03, 2026 (GLOBE NEWSWIRE) -- The Scotts Miracle-Gro Company (NYSE: SMG), the leading marketer of branded consumer lawn and garden products in North America, today announced that it intends to acquire the Black Kow brand to strategically expand its growing media and soil amendment portfolio.

In January 2026, the Company became the exclusive producer, distributor and marketer of Black Kow under a licensing agreement with an option to purchase. The Company has informed Organics Management, owner of Black Kow, that it has exercised the purchase option with an expected close in October. Terms of the deal were not disclosed.

"The planned acquisition of Black Kow demonstrates continued progress with our multi-year SMG 2.0 growth plan and further strengthens our ability to achieve our mid-range financial targets," said Nate Baxter, president and CEO of ScottsMiracle-Gro.

"Black Kow is a testament to our merger-and-acquisition strategy centered on tuck-in brands that we can seamlessly integrate into our core lawn and garden business. We will be good stewards of this trusted 57-year-old brand, scaling Black Kow from an innovation standpoint and expanding its availability nationally to engage broader demographic groups."

Black Kow, a leading brand in the soil amendment category, will complement Miracle-Gro premium ready-to-use products, expanding the overall portfolio with an established line of organic amendments, mature manure and specialty soils essential for building long-term soil structure and ideal for consumers who like to tinker in their gardens.

"Black Kow aligns with our mid-range growth algorithm as we expect it to drive topline sales and be consistent with the margin profile we have established moving forward," said Mark Scheiwer, chief financial officer and chief accounting officer. "This acquisition also reflects our disciplined approach to capital allocation, as it is a low-risk investment that will support our leverage ratio targets and be accretive to EPS beginning in year one."

SMG 2.0 Building Blocks

The acquisition of Black Kow is a tactical execution of SMG 2.0, whose building blocks include:

• Portfolio optimization and innovation through revitalization of product lineups to drive premium growth.
• Omnichannel and retail expansion to engage broader consumer groups through digital scale and retailer partnerships.
• Category growth and market expansion through greater household penetration to grow the Company's addressable market.
• Technology-driven operational excellence with a focus on expanding margins via targeted AI, automation and supply chain efficiencies.

Mid-Range Growth Algorithm

Black Kow supports the mid-range growth algorithm announced by the Company in August for fiscal 2027 through fiscal 2029 to deliver sustainable shareholder value. Elements include average annual:

• Total Company net sales growth of 2 to 4%.
• Adjusted gross margin rate improvement of 50 to 100 basis points.
• Adjusted EPS growth of 5 to 8%.
• Free cash flow greater than $275 million.

About ScottsMiracle-Gro
With approximately $3.3 billion in sales, the Company is the leading marketer of branded consumer lawn and garden products in North America. The Company's brands are among the most recognized in the industry. The Company's Scotts®, Miracle-Gro®, Ortho® and Tomcat® brands are market-leading in their categories. For additional information, visit us at www.scottsmiraclegro.com

For investor inquiries:
Brad Chelton
Vice President
Treasury, Tax and Investor Relations
[e-mail]
[phone]

For media inquiries:
Tom Matthews
Chief Communications Officer
[e-mail]
[phone]