Jim Hagedorn, CEO of Scotts Miracle-Gro said he plans to invest, “like a half billion dollars in the pot business,” he said recently in an interview with Forbes. Hagedorn has already invested about 250 million in the cannabis industry, including 120 million with the purchase of General Hydroponics last year.
Hagedorn got the idea to invest in the growing cannabis industry when he went into store in Washington and saw how much money the store was making selling hydroponic equipment back in 2013. The lawn and garden business had been hard by the recession and he saw that the future was in cannabis.
He has already invested 135 million in two different companies in California which sell soil, fertilizer, and other supplies to growers. He’s also invested 150 million in a company in Amsterdam, which specializes in hydroponic equipment. He plans to invest another 150 million by the end of the year.
Hagedorn’s investments have been met with some resistance, but he told his board that this was what they were doing and if they didn’t like it, they could leave, and some of them did, citing moral objections.
This year Scotts Miracle-Gro began selling a line of hydroponic equipment and soil called Black Magic, available in Home Depot stores across Washington, Colorado and Michigan. The company is also working with state governments to do research on proper pesticides for cannabis. Currently growers are using corn pesticides, but Hagedorn hopes to develop a line of pesticides specifically for cannabis.
This is a huge boon for the cannabis industry. Hagedorn’s investments will certainly help make the cannabis growing industry mainstream and more attractive to corporate investors, especially if Scotts Miracle-Gro decides to invest in international cannabis markets, which Hagedorn has also expressed an interest in.