Scotts Miracle-Gro in advanced talks to sell Hawthorne subsidiary to Vireo

The Company announced that it is in advanced discussions for the sale of its Hawthorne subsidiary to Vireo Growth (VREOF), with an anticipated closing in the fiscal second quarter. In conjunction with the pending divestiture, effective in its first quarter of fiscal 2026, the Company classified its results of operations for all periods presented to reflect the Hawthorne business as a discontinued operation. The Company is reaffirming its fiscal 2026 guidance, as the classification of the Hawthorne business as a discontinued operation does not impact the full-year outlook. Under the proposed terms of the transaction, Vireo Growth will acquire Hawthorne in exchange for an investment in Vireo and will integrate the cultivation supply business into its broader consumer cannabis operations. Vireo is a licensed operator that recently announced it will expand its current multi-state operating footprint to 10 states, including the largest cannabis markets of California, Florida and New York, with 166 dispensaries and increased capacity for its cannabis cultivation and production. The closing of the transaction is expected to occur following customary closing conditions.