Scotts Miracle-Gro Co. (NYSE: SMG) has received a binding offer from ICL (TASE: ICL) to acquire the shares and substantially all the assets of ScottsMiracle-Gro’s Global Professional business for $270 million (U.S.), subject to certain adjustments at closing, in an all-cash transaction.
The Global Professional business markets professional products to commercial greenhouses and nurseries for ornamental horticulture; sports fields, golf courses and public parks for professional turf applications; and specialty agriculture in North America, Europe, the Middle East, Africa, Latin America and Asia-Pacific. The company’s U.S. professional seed business is not included in the offer.
“Today’s announcement is another step in our strategy to become a more focused consumer business,” said ScottsMiracle-Gro chairman and CEO Jim Hagedorn. “Over the past two years, we have evolved our business portfolio to better leverage growth opportunities within our Global Consumer segment, allowing us to better drive shareholder value.”
The proposed sale is expected to close in Scotts’ second quarter of fiscal 2011, subject to regulatory review and the satisfaction of certain conditions, including works council and employee consultation. Scotts intends to apply net proceeds of the sale toward capital investments and debt retirement.