Bulletin: The Scotts Miracle-Gro Co. Ratings Unaffected By Sunlight Supply Acquisition

CHICAGO (S&P Global Ratings) April 18, 2018--S&P Global Ratings said today that its ratings and outlook on Marysville, Ohio-based The Scotts Miracle-Gro Co. (BB/Stable/--) are not affected by the lawn and garden company's announcement that it intends to acquire the assets of Sunlight Supply Inc., the largest distributor of hydroponics products in the U.S., for $450 million, including $425 million cash and $25 million equity. We expect the company to slow its share repurchase activity over the next several quarters such that adjusted leverage will be no higher than the mid-3x area at year-end 2018, including our assumption for moderate profit weakness this year.

...CHICAGO (S&P Global Ratings) April 18, 2018--S&P Global Ratings said today that its ratings and outlook on Marysville, Ohio-based The Scotts Miracle-Gro Co. (##/Stable/--) are not affected by the lawn and garden company's announcement that it intends to acquire the assets of Sunlight Supply Inc., the largest distributor of hydroponics products in the U.S., for $450 million, including $425 million cash and $25 million equity. We expect the company to slow its share repurchase activity over the next several quarters such that adjusted leverage will be no higher than the mid-3x area at year-end 2018, including our assumption for moderate profit weakness this year. Only a rating committee may determine a rating action and this report does not constitute a rating action....

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