Scotts Miracle-Gro CEO Jim Hagedorn has made good on an earlier promise to invest big money in ancillary cannabis companies.
Hagedorn announced in a conference call with investors that the lawn-care company signed a $40 million deal this week to acquire Botanicare, a marijuana nutrient and hydroponics products provider in Arizona.
The outspoken CEO previously said he wants to “invest, like, half a billion dollars” in the marijuana industry.
Earlier this year, Scotts bought Gavita, a European company that specializes in grow lighting and hardware, and has also invested in other cannabis-related companies.
“I think we have a good vision on where we want to go with it that doesn’t freak out my board or my lawyers,” Hagedorn said in the conference call. “(W)e have ideas on how we can be good stewards of these businesses and really become essential partners to the community of people who use these products.”
Hagedorn offered something of an olive branch to the cannabis cultivation community, whose members have expressed concerns that the industry is being taken over by big companies with shoddy products.
“So, to our new friends in the hydroponics space, I want you to know that we take seriously our responsibility as the industry leader. And since we are an outsider, I know a lot of people will be watching to see how we behave,” Hagedorn said.