Hawthorne buy Luxx Lighting for $215 million

Liz Filmer
11 Jan 2022

First-quarter sales of Hawthorne Gardening Co., the hydroponic business owned by parent company Scotts Miracle-Gro is expecting a sales decline of around 40% due to a slowdown in the legal cannabis market and various supply-chain issues. 

Hawthorne is a leading provider of nutrients, lighting and other durable and consumable products used in the indoor and hydroponic growing industry. Hawthorne owners Scotts also announced the acquisition of two companies, Luxx Lighting, for $215 million and True Liberty Bags for $10 million, strengthening their cannabis-related portfolio.

Luxx will extend Hawthorne’s current lighting portfolio, offering growers and retailers more options, such as the latest LED tech. True Liberty helps expand Hawthorne’s harvest portfolio. 

Based in Los Angeles, California, Luxx Lighting was started in 2017 by a group of hands-on southern California growers, including founders of the Jungle Boys cannabis brand. Hawthorne have stated that they will maintain an ongoing relationship with Jungle Boys to support the sales and marketing of Luxx moving forward.

Scotts highlighted supply issues that companies in various industrial sectors have endured in response to the COVID pandemic and because of extreme weather conditions. Scotts didn’t go into details but said the disruptions had hampered sales of specific products.

“We are optimistic the supply chain disruptions will be corrected by the end of January. Moving forward, we’ll be able to meet the continued demand we’re seeing for our industry-leading signature products,” 

Hawthorne said that the acquisitions reinforce the company’s commitment to providing additional products and solutions to cannabis cultivators in state-legal markets. According to Scotts, Luxx alone is expected to add $100 million in sales annually.

“While the US cannabis market continues to experience challenges from over-production in recent months, we see the current reality as an opportunity to distance ourselves from the competition further and strengthen our business for long-term success.” 

Liz Filmer