MARRYSVILLE, Ohio - The Scotts Co. had a busy week this week as it named a new CEO, reported very strong earnings and announced a series of acquisitions for its Scotts Lawn Service division. The acquisitions include:
- Northern Lawns, Omaha, Neb.
- Real Green Lawn Care, Detroit, Mich.
- Munie Lawn Care, St. Louis, Mo.
- Green Valley Lawn Care, Kansas City, Kan.
- Soft-N-Green, Columbus, Ohio
These deals mean that Scotts has acquired 22 companies and more than $12 million in annual revenue in the last few months as it builds its lawn care division, according to Mark Long, vice president, Scotts Lawn Service. "While our acquisition program may not be as aggressive as previous consolidators, our focus is the acquisition of the right companies in new cities," Long explained. "I promise you, the grass oval and butterfly will be visible in more neighborhoods and more cities in the very near future."
Interestingly enough, Long left the door open for Scotts Lawn Service to grow in other services as well. "We may, in the future, begin looking at companies offering more than lawn care," he said, declining to specify what services the company might also be interested in.
Scotts' lawn service division, while only a few years old, continues its rapid growth. According to the company's first quarter earnings report, Scotts Lawn Service generated $4.4 million in net sales in the first three months of this year - a 69 percent jump from last year. In fact, Scotts Lawn Service was the only division to achieve double-digit growth for Scotts Co. in that timeframe. Long said Scotts expects lawn service revenue to exceed $41 million in the current fiscal year and double for next year.
In addition, Scotts Co. announced that James Hagedorn, chief operating office, will be named chief executive in May. Hagedorn will remain president of Scotts, and he replaces Charles Berger as chief executive. Berger will continue as the company's chairman.
The positive news sent Scotts' stock up better than 10 percent on April 26 to $42.60 a share, just shy of the 52-week high of $43.90.