Garden centre suppliers and retailers were left waiting anxiously for news of how the recently announced negotiations between Scotts and Solus would affect their businesses.
Yesterday, GTN Xtra revealed that top executives Martin Breddy, of Scotts (above left) Mark Pearson, of Solus (above right) have been "working on a plan that would bring the two businesses together in the UK".
GTN Xtra spoke to a number of suppliers who were aware of the Scotts-Solus meetings but none were willing to comment on how they felt a deal between Scotts and Solus would affect them.
Meanwhile, GIMA issued the following statement: "The Garden Industry Manufacturers Association are aware of the statements on industry websites today concerning the plan by Scotts and Solus to bring their two businesses together.
"Both Solus and Scotts are GIMA members and it is not our position to comment on individual member's business strategies.
"We are, of course, concerned about any business activity which can impact on the garden supply trade (suppliers and retailers) and we will continue to review developments in support of our members, many of whom are third party suppliers that rely on wholesalers and distributors to get their products to their retail customers.
"We note from the published statements that a period of due diligence is commencing and that will inevitably include detailed conversations with stakeholders including other GIMA members. Any members who are concerned or would like to comment are welcome to contact GIMA in confidence.
"Given the imminent trading season we believe the focus of everybody in our industry should be on maximising sales over the coming weeks."
It was revealed on Friday that Mark Pearson, CEO of Solus Garden and Leisure, and Martin Breddy, Vice President and General Manager of The Scotts Company (UK) Limited, had been working on a plan that would bring the two businesses together in the UK.
In a joint statement the companies said they had developed a strong strategic partnership over the past 25 years, resulting in:
- Scotts' position as a leader in the UK lawn and garden market driven by strong brands and advertising excellence
- Solus building a business based on consistently excellent service levels and strong own brand ranges.
While the negotiations are still in progress, the parties said they were pleased with the progress to date and were now entering the due diligence stage. This process is expected to last four to six weeks.
Simon Yealland, Founder and Chairman of Solus, said: "We have had an excellent 35 years working with our suppliers and our joint retail customers here in the UK and abroad. I am delighted with the plans that Martin and Mark are developing- it would be a great deal for all of our partners."
Mark Pearson added: "The partnership that Solus has enjoyed with Scotts is now ready to take the next step forward - the two businesses would be much stronger together. We are passionate about driving the sales of all of our brand partners' ranges as well as our own Solus brands. This, together with distribution excellence and the support that we can give each other, is what the market needs.
"If completed, this is going to be excellent news for our customers, our suppliers and the industry in general."
Martin Breddy said: "Scotts and Solus have looked at possible combinations for a number of years. We are delighted to finally work on this opportunity to bring the two businesses closer together.
"Such a union would create a fantastic opportunity to combine Scotts' innovation, advertising and marketing with Solus' service levels and complementary core gardening products, and we are excited to join forces to support the industry in its mission to drive a resurgence in UK gardening in 2014 and beyond."
While negotiations are still ongoing, Pearson and Breddy have confirmed that one of the chief goals of the proposed deal is to ensure seamless supply in the coming months and to make the 2014 season a success for the trade.