Scotts Miracle-Gro has completed the sale of its Hawthorne Gardening subsidiary to Vireo Growth, marking another step in its shift toward its North American consumer lawn and garden business.
The company said the transaction was done in exchange for Vireo shares, which will be held by an independent strategic partner and recorded among ScottsMiracle-Gro’s other investments. ScottsMiracle-Gro also said the divestiture does not change its fiscal 2026 guidance.
The move removes Hawthorne from ScottsMiracle-Gro’s operating results beginning in fiscal 2026. The company said it had already classified Hawthorne as a discontinued operation in the first quarter of fiscal 2026 and recast historical results for fiscal 2024 and fiscal 2025 to reflect that change.
ScottsMiracle-Gro said the sale should help its margin recovery and full-year targets by excluding Hawthorne from future results. It also said the transaction gives Hawthorne “a good home” while preserving upside tied to prior Hawthorne-related investments.
Vireo Growth, the buyer, operates in 10 states, including California, Florida and New York, and said it has 166 dispensaries plus expanded cultivation and production capacity. As part of the deal, Vireo nominated Chris Hagedorn, an executive vice president at ScottsMiracle-Gro who led the Hawthorne business, for election to its board. If elected, Vireo plans to create a strategic growth committee chaired by Hagedorn.
ScottsMiracle-Gro said it generates about $3.4 billion in sales and continues to focus on its core brands, including Scotts, Miracle-Gro, Ortho and Tomcat. Today the company's shares have moved -8.1% to a price of $62.19. Check out the company's full 8-K submission here.
