Houlihan Lokey Advises Exponent Private Equity (1)

Houlihan Lokey is pleased to announce that Exponent Private Equity LLP (Exponent) has acquired the European and Australian operations of The Scotts Miracle-Gro Company (NYSE:SMG) (SMG), the world's leading marketer of branded consumer products for lawn and garden care. The transaction closed on 31 August 2017.

Founded in 1868 in Ohio, SMG has grown to become the world's leading manufacturer and distributor of fertilisers, plant controls, pest controls, growing media, and other lawn, garden, and home protection products in North America, Europe, and the Asia-Pacific region. The proposed sale includes rights to leading garden care brands such as Roundup®, Miracle-Gro®, Weedol®, KB®, Substral®, Nexa Lotte®, and Osmocote®, among others, which are currently sold across the world in retailers such as B&Q, Bunnings Warehouse, and Gamm Vert in addition to other supermarket chains and independent garden centres.

It is proposed that SMG's operations in Australia, Austria, Belgium, France, Germany, Poland, and the UK would be carved out as part of the offer, reflecting SMG's commitment to concentrate more of its resources on its US operations. Under Exponent's leadership, SMG's brands and products would continue to be manufactured and marketed in Europe and Australia as a result of licensing and sublicensing agreements.

Houlihan Lokey served as exclusive M&A and financing advisor to Exponent. This proposed transaction further represents Houlihan Lokey's ability to provide a complete solution for its clients, with the bank's industry expertise and debt capital markets specialisations once again combining to deliver a superior result.

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