Under Scotts Miracle-Gro’s extended partnership, it has been able to extend the brand into new lawn and garden categories and geographies. Scotts said the companies also have reached a technology-sharing agreement and amended the existing Roundup agreement.
Under the agreement, Scotts will pay Monsanto a one-time upfront payment of $300 million in exchange for a Roundup brand licence, extended agency agreement and technology agreement.
"Our role as the marketing agent for the consumer Roundup business has been critical to our success and a key driver of shareholder value," said Scotts chief executive Jim Hagedorn.
"This amended agreement is significant in helping to secure our financial future and provide the company with greater flexibility to manage its business portfolio."
Scotts said the deal allows it to introduce the brand into the lawn-service industry for the first time and into China and Latin America. Japan and countries with US trade embargoes are excluded from the agreement, Scotts said.
Meanwhile, in the UK, Scotts is selling all the Solus brands it bought in 2014, apart from Chapelwood bird food, after issues with distribution and competition arose.