MJ Biz
The Scotts Miracle-Gro Co. plans to spin off its marijuana unit, Hawthorne Gardening Co., into a stand-alone operation – a move company executives believe will make the entity “more valuable.”
That’s an about-face for Scotts CEO Jim Hagedorn, who has said he’d like to retain the division as part of the parent company despite the volatility of the marijuana sector, according to Green Market Report.
But with Hawthorne’s earnings before interest, taxes, depreciation and amortization (EBITDA) expected to be about $20 million this year, the Ohio-based company’s leadership determined that its cannabis arm would fare better on its own.
“This is not like we’re looking to get rid of it,” Hagedorn told analysts Wednesday during the company’s earnings call.
“We’re looking to focus our investments in the best configuration possible for our shareholders.”
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Scotts Miracle-Gro to spin off marijuana arm Hawthorne into separate business
