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The Scotts Miracle-Gro Company’s SMG subsidiary, The Hawthorne Gardening Company, and BFG Supply, a national distributor of horticultural and agricultural products, have forged a strategic partnership. This collaboration entails BFG distributing Hawthorne’s exclusive Signature brand cultivation supplies and solutions.

This partnership is integral to both companies' overarching strategies, aimed at seizing growth opportunities within the hydroponic products sector and offering enhanced solutions to growers.

Hawthorne is strategically shifting its focus by discontinuing the distribution of products from other companies. It will concentrate solely on marketing, innovating and supporting its extensive portfolio of Signature brands. These include renowned names like Gavita, General Hydroponics, Botanicare, Cyco, Mother Earth, HydroLogic, Gro Pro and more.

The Scotts Miracle-Gro Company Price and Consensus

This move will enable Hawthorne to streamline and optimize its operations. BFG will step in as a primary partner to distribute Signature products to Hawthorne customers. Leveraging its national distribution network and proven track record in customer support, BFG is well-positioned to facilitate this transition effectively.

These changes not only drive Hawthorne’s growth but also offer immediate and long-term benefits to its retailers and growers. By sharpening their focus, they will allocate more resources to initiatives that propel their industry-leading brands forward while enhancing customer service and experiences. BFG shares this commitment and will play a pivotal role in executing their strategy.

Since 2016, BFG has been expanding its market distribution strategy in response to customer demand for a comprehensive product range in the hydroponic and professional growers space. Through this strategic partnership, BFG aims to cement its status as the premier distributor for all Hawthorne Signature brands and third-party products within the hydroponic retail sector. This initiative is slated to commence in the second quarter of this calendar year, capitalizing on BFG's national distribution footprint.

Shares of Scotts Miracle-Gro have gained 4.9% in the past year against a 24.2% decline of the industry.

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Zacks Rank & Key Picks

Scotts Miracle-Gro currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, sporting a Zacks Rank #1 (Strong Buy), and Ecolab Inc. ECL and Hawkins, Inc. HWKN, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for CRS’ current fiscal year earnings is pegged at $4 per share, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 12.2%. The company’s shares have increased 65.5% in the past year.

Ecolab has a projected earnings growth rate of 22.65% for the current year. The Zacks Consensus Estimate for ECL’s current-year earnings has been revised upward by 5.4% in the past 60 days. ECL topped the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.7%. The company’s shares have rallied 42.5% in the past year.

The consensus estimate for HWKN’s current fiscal year earnings is pegged at $3.61 per share, indicating a 26% year-over-year rise. HWKN beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have surged 77.7% in the past year.

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