ScottsMiracle-Gro to Acquire Black Kow in Alignment with SMG 2.0 Growth Strategy

ScottsMiracle-Gro ties the planned Black Kow acquisition directly to its SMG 2.0 roadmap and mid-range 2027–2029 growth algorithm.

Rhea-AI Summary

ScottsMiracle-Gro (SMG) plans to acquire the Black Kow brand, advancing its SMG 2.0 growth strategy and expanding its growing media and soil amendment portfolio. The company exercised its purchase option with Organics Management and expects the deal to close in October; financial terms were not disclosed.

ScottsMiracle-Gro became exclusive producer, distributor and marketer of Black Kow in January 2026 under a licensing agreement. Management describes Black Kow, a 57-year-old soil amendment brand, as complementary to Miracle-Gro premium ready-to-use products and key to broadening national distribution and demographic reach. The company links this transaction to its mid-range growth algorithm for fiscal 2027–2029, targeting average annual total net sales growth of 2–4%, adjusted gross margin rate improvement of 50–100 basis points, adjusted EPS growth of 5–8%, and free cash flow above $275 million.

Positive

• Planned acquisition of Black Kow adds a leading soil amendment brand to ScottsMiracle-Gro’s growing media and soil portfolio
• Exclusive licensing since January 2026 provides integration experience before full brand acquisition
• Mid-range 2027–2029 algorithm targets 2–4% average annual total net sales growth
• Margin outlook calls for 50–100 basis points average annual adjusted gross margin rate improvement
• EPS guidance targets 5–8% average annual adjusted EPS growth from fiscal 2027–2029
• Free cash flow target is greater than $275 million annually over the 2027–2029 period

Negative

• None.

Market Reaction – SMG

+2.55% $61.50

15m delay

+2.55% Vs previous close

$61.50 Last Price

$60.11 $62.73 Day Range

$3.58B Market Cap

0.0x Rel. Volume

Following this news, SMG has gained 2.55%, reflecting a moderate positive market reaction. The stock is currently trading at $61.50.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Market Context

SMG's August 4 financial-target announcement was followed by a -2.61% 24-hour reaction, adding histo...

Analysis

SMG's August 4 financial-target announcement was followed by a -2.61% 24-hour reaction, adding historical context to this strategic update. The platform also records net selling by insiders; deal economics remain an important disclosure risk.

Key Figures

Brand history: 57 years Expected close: October 2026 Net sales growth: 2 to 4% +4 more

7 metrics

Brand history 57 years Black Kow brand

Expected close October 2026 Black Kow acquisition

Net sales growth 2 to 4% Average annual fiscal 2027–2029 target

Gross margin improvement 50 to 100 basis points Average annual fiscal 2027–2029 target

Adjusted EPS growth 5 to 8% Average annual fiscal 2027–2029 target

Free cash flow Greater than $275 million Average annual fiscal 2027–2029 target

Company sales Approximately $3.3 billion Company description

Historical Context

5 past events · Latest: Aug 19 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 19	Community partnership	Positive	+2.7%	Scotts and Columbus Crew hosted a mowing clinic for 50 Ohio 4-H youth.
Aug 14	Community event	Neutral	-2.8%	Scotts partnered with America250 to collect oral and visual histories in Columbus.
Aug 13	Community event	Neutral	-0.7%	Scotts announced an America250 storytelling studio at ScottsMiracle-Gro Field.
Aug 04	Financial targets	Positive	-2.6%	Investor Day outlined fiscal 2027–2029 targets and a capital allocation strategy.
Jul 30	Investor Day notice	Neutral	-2.9%	Scotts announced speakers and logistics for its August 4 Investor Day.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent SMG news reactions were mixed, with positive or neutral announcements more often followed by negative price reactions.

Key Terms

soil amendment, adjusted gross margin rate, basis points, free cash flow

4 terms

soil amendment technical

"Black Kow, a leading brand in the soil amendment category"

A soil amendment is any material added to land to improve its physical condition or fertility—things like compost, lime, sand or specialty products that change how soil holds water, drains, or supplies nutrients. For investors, amendments matter because they influence crop yields, input costs, and regulatory or sustainability profiles for agricultural and land-management businesses, much like upgrading parts can improve a machine’s performance and efficiency.

adjusted gross margin rate financial

"Adjusted gross margin rate improvement of 50 to 100 basis points"

Adjusted gross margin rate measures the portion of sales left after subtracting the direct cost to make or buy the goods or services sold, expressed as a percentage of revenue, but with certain one-time or non-operational items removed (for example, unusual charges, acquisition-related costs, or other adjustments a company discloses). It matters to investors because it aims to show the underlying profitability of core product or service sales without temporary or unusual distortions—like judging the cost of a recipe while ignoring a one-off purchase of new cookware.

basis points financial

"Adjusted gross margin rate improvement of 50 to 100 basis points"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

free cash flow financial

"Free cash flow greater than $275 million"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

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AI-generated analysis. How Rhea-AI works. Not financial advice.

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Company will scale trusted 57-year-old brand and expand its availability nationwide

MARYSVILLE, Ohio, Sept. 03, 2026 (GLOBE NEWSWIRE) -- The Scotts Miracle-Gro Company (NYSE: SMG), the leading marketer of branded consumer lawn and garden products in North America, today announced that it intends to acquire the Black Kow brand to strategically expand its growing media and soil amendment portfolio.

In January 2026, the Company became the exclusive producer, distributor and marketer of Black Kow under a licensing agreement with an option to purchase. The Company has informed Organics Management, owner of Black Kow, that it has exercised the purchase option with an expected close in October. Terms of the deal were not disclosed.

“The planned acquisition of Black Kow demonstrates continued progress with our multi-year SMG 2.0 growth plan and further strengthens our ability to achieve our mid-range financial targets,” said Nate Baxter, president and CEO of ScottsMiracle-Gro.

“Black Kow is a testament to our merger-and-acquisition strategy centered on tuck-in brands that we can seamlessly integrate into our core lawn and garden business. We will be good stewards of this trusted 57-year-old brand, scaling Black Kow from an innovation standpoint and expanding its availability nationally to engage broader demographic groups.”

Black Kow, a leading brand in the soil amendment category, will complement Miracle-Gro premium ready-to-use products, expanding the overall portfolio with an established line of organic amendments, mature manure and specialty soils essential for building long-term soil structure and ideal for consumers who like to tinker in their gardens.

“Black Kow aligns with our mid-range growth algorithm as we expect it to drive topline sales and be consistent with the margin profile we have established moving forward,” said Mark Scheiwer, chief financial officer and chief accounting officer. “This acquisition also reflects our disciplined approach to capital allocation, as it is a low-risk investment that will support our leverage ratio targets and be accretive to EPS beginning in year one.”

SMG 2.0 Building Blocks

The acquisition of Black Kow is a tactical execution of SMG 2.0, whose building blocks include:

• Portfolio optimization and innovation through revitalization of product lineups to drive premium growth.
• Omnichannel and retail expansion to engage broader consumer groups through digital scale and retailer partnerships.
• Category growth and market expansion through greater household penetration to grow the Company’s addressable market.
• Technology-driven operational excellence with a focus on expanding margins via targeted AI, automation and supply chain efficiencies.

Mid-Range Growth Algorithm

Black Kow supports the mid-range growth algorithm announced by the Company in August for fiscal 2027 through fiscal 2029 to deliver sustainable shareholder value. Elements include average annual:

• Total Company net sales growth of 2 to 4%.
• Adjusted gross margin rate improvement of 50 to 100 basis points.
• Adjusted EPS growth of 5 to 8%.
• Free cash flow greater than $275 million.

About ScottsMiracle-Gro
With approximately $3.3 billion in sales, the Company is the leading marketer of branded consumer lawn and garden products in North America. The Company’s brands are among the most recognized in the industry. The Company’s Scotts®, Miracle-Gro®, Ortho® and Tomcat® brands are market-leading in their categories. For additional information, visit us at www.scottsmiraclegro.com

For investor inquiries:
Brad Chelton
Vice President
Treasury, Tax and Investor Relations
brad.chelton@scotts.com
(937) 309-2503

For media inquiries:
Tom Matthews
Chief Communications Officer
tom.matthews@scotts.com
(937) 844-3864

FAQ

What acquisition did ScottsMiracle-Gro (SMG) announce involving Black Kow?

ScottsMiracle-Gro announced that it intends to acquire the Black Kow brand, a leading soil amendment line, from Organics Management. The deal follows a January 2026 licensing agreement and is aimed at expanding the company’s growing media and soil amendment portfolio.

When is the ScottsMiracle-Gro (SMG) acquisition of Black Kow expected to close?

The company expects the Black Kow acquisition to close in October. ScottsMiracle-Gro has already been the exclusive producer, distributor and marketer of Black Kow since January 2026 under a licensing agreement with an option to purchase.

How does the Black Kow deal support the SMG 2.0 growth strategy for ScottsMiracle-Gro (SMG)?

ScottsMiracle-Gro describes the Black Kow acquisition as a tactical execution of SMG 2.0. It supports portfolio optimization, omnichannel and retail expansion, category growth via greater household penetration, and technology-driven operational efficiencies aimed at expanding margins.

What is Black Kow and how will it fit into ScottsMiracle-Gro’s (SMG) product portfolio?

Black Kow is a 57-year-old soil amendment brand offering organic amendments, mature manure and specialty soils. ScottsMiracle-Gro states it will complement Miracle-Gro premium ready-to-use products and help build long-term soil structure for consumers who enjoy working in their gardens.

What financial growth targets did ScottsMiracle-Gro (SMG) outline for 2027–2029?

For fiscal 2027–2029, ScottsMiracle-Gro’s mid-range algorithm targets 2–4% average annual total net sales growth, 50–100 basis points average annual adjusted gross margin rate improvement, 5–8% adjusted EPS growth, and free cash flow above $275 million annually.

How does ScottsMiracle-Gro (SMG) expect the Black Kow acquisition to affect margins and EPS?

The company says Black Kow aligns with its mid-range growth algorithm and is expected to drive topline sales while fitting its forward margin profile. Management also states that the acquisition should support leverage ratio targets and be accretive to EPS beginning in year one.

What is the current sales scale of ScottsMiracle-Gro (SMG) mentioned in the Black Kow announcement?

ScottsMiracle-Gro reports approximately $3.3 billion in sales, describing itself as the leading marketer of branded consumer lawn and garden products in North America, with brands such as Scotts, Miracle-Gro, Ortho and Tomcat.