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SMG Expands Organic Gardening Portfolio With Black Kow Acquisition
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Key Takeaways
Scotts Miracle-Gro acquires Black Kow to expand its organic gardening portfolio and nationwide reach.
SMG plans to launch new Black Kow-powered organic soil mixes in fiscal 2027, driving product innovation.
The Black Kow deal is expected to boost sales and profitability while improving SMG's leverage ratio.
The Scotts Miracle-Gro Company (SMG - Free Report) has completed the acquisition of the Black Kow brand from Organics Management, strengthening its position in organic gardening solutions and expanding its core Gardens portfolio by making a regional favorite accessible throughout the country. The transaction follows a licensing partnership established in January 2026, through which Scotts Miracle-Gro exercised its purchase option to bring the brand fully into its business.
Black Kow, a leading brand of naturally composted cow manure and organic soil amendments, complements the company's Miracle-Gro offerings. SMG’s extensive manufacturing and distribution network will increase Black Kow's availability. The acquisition also creates opportunities for product innovation. In fiscal 2027, the company plans to introduce ready-to-use organic potting, raised-bed and in-ground soil mixes powered by Black Kow compost. It also intends to broaden its single-ingredient soil amendment offerings to serve DIY gardeners who seek customization.
The deal aligns with Scotts Miracle-Gro's multi-year SMG 2.0 growth strategy and tuck-in acquisition approach. Management expects the transaction to contribute to sales and profitability growth in its first year while improving the company's leverage ratio.
Combining Black Kow's established brand identity and organic gardening expertise with Miracle-Gro's performance-driven product capabilities is expected to strengthen Scotts Miracle-Gro's position and help it capitalize on rising consumer demand for sustainable gardening solutions.
Shares of SMG have gained 19.5% over the past year against the 7.1% decline in its industry.
Image Source: Zacks Investment Research
SMG’s Zacks Rank & Key Picks
SMGcurrently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Element Solutions Inc. (ESI - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RSshares have gained 62.4% over the past year.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 75%.
The Zacks Consensus Estimate for ESI’s 2026 earnings is pegged at $1.85 per share, indicating a year-over-year rise of 24.2%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 6%.
View the Zacks #1 Rank List
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SMG Expands Organic Gardening Portfolio With Black Kow Acquisition
Key Takeaways
The Scotts Miracle-Gro Company (SMG - Free Report) has completed the acquisition of the Black Kow brand from Organics Management, strengthening its position in organic gardening solutions and expanding its core Gardens portfolio by making a regional favorite accessible throughout the country. The transaction follows a licensing partnership established in January 2026, through which Scotts Miracle-Gro exercised its purchase option to bring the brand fully into its business.
Black Kow, a leading brand of naturally composted cow manure and organic soil amendments, complements the company's Miracle-Gro offerings. SMG’s extensive manufacturing and distribution network will increase Black Kow's availability. The acquisition also creates opportunities for product innovation. In fiscal 2027, the company plans to introduce ready-to-use organic potting, raised-bed and in-ground soil mixes powered by Black Kow compost. It also intends to broaden its single-ingredient soil amendment offerings to serve DIY gardeners who seek customization.
The deal aligns with Scotts Miracle-Gro's multi-year SMG 2.0 growth strategy and tuck-in acquisition approach. Management expects the transaction to contribute to sales and profitability growth in its first year while improving the company's leverage ratio.
Combining Black Kow's established brand identity and organic gardening expertise with Miracle-Gro's performance-driven product capabilities is expected to strengthen Scotts Miracle-Gro's position and help it capitalize on rising consumer demand for sustainable gardening solutions.
Shares of SMG have gained 19.5% over the past year against the 7.1% decline in its industry.
Image Source: Zacks Investment Research
SMG’s Zacks Rank & Key Picks
SMGcurrently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Element Solutions Inc. (ESI - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
RS and ESI currently sport a Zacks Rank #1 (Strong Buy) each, while ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RSshares have gained 62.4% over the past year.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 75%.
The Zacks Consensus Estimate for ESI’s 2026 earnings is pegged at $1.85 per share, indicating a year-over-year rise of 24.2%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 6%.