In This Issue
Much loved industry figure passes away after cancer battle
OBE's for Colin Squire and John Athwal
Rachel Doyle of Arboretum scoops Retail Excellence Lifetime Achievement Award
Bunnings UK boss to take a three month break
New Year Greetings to all our readers
When will the For Sale sign go up at Wyevale GCs?
So what went on behind closed doors at the Wyevale suppliers meeting.?
Rising Stars 2017 - The final 12
Owners of garden centre face £21,000 bill after selling 'dangerous' items
Wyevale Garden Centres announces shift away from acquisitions
Wyevale Garden Centres named on 'worst to work for' list
Sad news - Alistair Lorimer dies
Durston Garden Products HOLD prices for 2018
New display ideas, new products, new suppliers at Bunnings first UK garden centre - GTN Xtra picture exclusive
Retail ops restructured as going gets tough for Wyevale GCs
All eyes will be on how Wyevale GCs plans to replace 'unsustainable' growth strategy with core business focus
Sir Terry and Mr M...unfinished business at Dobbies?
Mothers Day bonanza as garden centre records are broken across the country
We cleared out Homebase management too quickly, confesses parent company's new CEO
Carol Paris is leaving the HTA
Dobbies "gets together with Ocado to be the best on-line"
Nicholas Marshall is back in the gardening industry as CEO of Dobbies
Newshound finds Mr M has been busy recruiting 'experience'...
Terra Firma props up Wyevale Garden Centres
So this is what a Bunnings Warehouse looks like...
A bittersweet moment says Scott CEO as he announces UK, Europe and Aussie sell-off
Gardman reports £1.5m loss - but earnings soar by 50%
Blue Diamond buys Bridgford Garden Centre
Exponent Private Equity to buy Scotts business in UK, Europe and Australia
Brothers sell £15m Yarnton Nurseries business
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Westland win Sword of Excellence with SafeLawn
Is this the smallest garden centre in the UK?
Glee to hold two shows per year from 2018 onwards
Garden retailers sign up to industry Xylella statement
Marshall's strategy for Dobbies to put focus back on plants
Woodlodge win GCA Associate of the year Award
"The Best Glee for Years" - Retailers verdict on this years show
"Xylella is the most serious situation I have come across in 32 years in the industry"
MEP's vote to ban glyphosate completely by 2022
Blisters, tomatoes, over 100 walkers and runners raise over £22k on Garden Re-Leaf Day
Coolings buys Potted Garden Nursery at Maidstone
Exclusive pictures from Bunnings' biggest store yet
New men at the top at Hillier
Xylella fastidiosa: how Italy has tackled the problem
Town & Country is sold to EP Barrus
Supplier rebates to exceed £1.5m for Choice members
"Garden Centre of the Future" planned for new outlet retail centre at Downtown Grantham
Bunnings UK No. 3 - Hemel Hempstead in pictures
Shoplifting costs retailers £800m a year says research
Scotts: We want out of Europe...but we won't give the business away
New trade show will demonstrate how to cater for vegans
Historic exhibition and new branding for Dobbies
Exciting new-build garden centre underway
Bunnings - Homebase - sales drop by £44m
Glyphosate licence approved for 5 years
2017: A year of transition for the garden centre trade
Top 50 most-read stories in GTN Xtra 2017
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A bittersweet moment says Scott CEO as he announces UK, Europe and Aussie sell-off
No 21 Most Read Story 2017. First published: Sunday 7 May, 2017
 

You almost detect a tear in his eye as Scotts Miracle-Gro’s CEO Jim Hagedorn told investors last week: “This is a bit of a bittersweet moment for us.”

He had just announced that Scotts had received a binding offer from Exponent Private Equity of around $250 million for its non-US businesses, which includes Miracle-Gro in the UK and Europe. The deal is expected to be completed by 30 September.

They were selling good businesses, he said. “In fact, international is out-of-the-gate strong this season, which reinforces the challenge that this was not…it was not the business, it was our ownership.”

It was, he said, all about accepting that Scotts could achieve better growth and margin opportunities in its home territory, the United States, “and that's where it makes sense for us to invest. If we're not willing to invest in these other businesses, then we owe it to everyone, especially our associates, to put these businesses in the hands of a better owner.”

He believed Exponent was the right owner. “They're excited about the category, our brands, and the opportunity to grow. Since this is likely my last time to publicly do so, I want to thank and congratulate our associates in these businesses.”

This will have been welcomed by the hard-working Miracle-Gro Company team down at Frimley, who would have been forgiven had they found the recent ownership uncertainty a tad unsettling.

Jim recalled how his career in lawn and garden started in Europe when his father, Horace, sent him over to England to launch Miracle-Gro. “I know what this industry is like over there. I know that it's more complicated, more competitive, and just flat out harder than the United States. Our people in Europe and Australia have done an outstanding job and probably haven't always received the credit they deserve. I want to thank them and wish them good luck with Exponent.”

He also thanked the friends he had made over here on the retail side of the business. “I'm really going to miss you guys.”
Pass the Kleenex…

The momentary melancholy was lifted, though, when he reminded his audience that once the deal was done, the company re-configured and the cash in the bank, more than 95% of the sales and profit would be derived from the United States.

And a lot of it, he hopes, will come from the burgeoning cannabis industry, which Scotts’ Hawthorne subsidiary is busily servicing as we speak.

CFO Randy Coleman (also Executive Vice-President) said the combined impact of selling the international businesses and hitting the company’s financial targets this year would improve the operating margin by 17%.

He also confirmed Scotts would maintain the UK and German employee pension plans. “That was part of the arrangement from day one as we talked to Exponent, the buyer, and we're comfortable with that,” he added.

We asked Exponent PE's Simon Davidson (pictured right) if he would like to comment further but had not received a reply as this edition was being prepared. Sheila Hill, who runs the UK division, also declined to comment.

[Our thanks to analysts Seeking Alpha of New York for the transcript of last week's Scotts Miracle-Gro earnings call, from which this article was prepared]


Post Script:  US market websites have also reported this weekend that Jim Hagadorn sold shares worth $2.93m on Wednesday 3rd May. American Banking News states he now directly owns 99,006 shares in the company, valued at $8,8m. 

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