(MARYSVILLE, OH – Jul 22, 2016) — Scotts Miracle-Gro Co. is working more closely with one of its indoor-gardening partners.
The Marysville company is enlisting AeroGrow International Inc. to help with its direct-to-consumer business segment and with developing large-scale gardening and consumer lighting products. AeroGrow, based in Boulder, Colorado, will get a retainer and a percentage of net sales for the direct-to-consumer assistance,according to a Securities and Exchange Commission filing.
It also retains the rights to sell lighting and large-scale growing products on its website and via Amazon.com.
Scotts, meanwhile, has offered its partner a $6 million short-term loan.
“We believe these agreements further set the stage for what we anticipate will be an exciting fiscal 2017 and beyond at AeroGrow,” CEO J. Michael Wolfe said in a statement.
AeroGrow (OTCQB: AERO) makes a dirt-free indoor gardening system calledMiracle-Gro AeroGarden that it says allows anyone to grow food and plants year-round, “so simply and easily that no green thumb is required.”
Scotts invested $4.5 million in AeroGrow in 2013 for a 30 percent stake in the manufacturer.
Since then Scotts (NYSE:SMG) has jumped head-first into indoor and hydroponic gardening. It’s a rapidly growing segment for the lawn-and-garden company, and CEO Jim Hagedorn has not been shy about the possibly for growth tied to legalized marijuana.