History of Sun Gro

A company with history

Sun Gro is the largest producer of peat in North America and the largest distributor of peat moss and peat-based growing media products to the North American professional plant growers market. The Company sells its products primarily to professional greenhouse, nursery and specialty crop growers throughout North America, as well as to golf course developers and landscapers. Sun Gro was founded in 1929 in Vancouver, British Columbia as the Western Peat Company Ltd., a producer of peat moss. Initial success enabled the Company to grow and its operations expanded throughout British Columbia and eastward into central Canada. The business has had a number of owners over the years and was acquired by Hines in June 1993. In 1995, Hines was acquired by Madison Dearborn Partners II, L.P. ("Madison Dearborn"), a Chicago based private equity firm. Madison Dearborn introduced a new management team to Sun Gro in 1997, led by Mitch Weaver, as chief executive officer.

Mitch Weaver and his new management team refocused the Company's strategy from building brand awareness and market share in the retail market to targeting the higher margin, more stable professional growers market, expanding its private label retail business and completing complementary strategic acquisitions. The team has undertaken this growth strategy, fueled in part by acquisitions, and has created a vertically integrated producer of value-added growing mixes with a broad North American footprint.

Between 1998 and 1999, Sun Gro made three separate strategic acquisitions which significantly expanded its product line and its ability to serve its customers across North America, and improved the quality and life of its peat reserves. In 1998, Sun Gro acquired Lakeland Peat Moss Ltd. ("Lakeland"), which gave the Company additional mixing capability and control over the majority of economically accessible peat reserves in western Canada. The Company has enjoyed synergies from the Lakeland acquisition through production and transportation efficiencies.

In 1999, Sun Gro acquired Strong-Lite Products Corp. ("Strong Lite") and certain assets of Pro Gro Products, Inc. ("Pro Gro") in two separate transactions. These acquisitions strengthened Sun Gro's leadership position in the professional growers segment by adding high quality bark-based growing mixes to its product line for the professional market and fulfilled the Company's desire to establish a North American footprint of mixing and distribution facilities.

Capacity and bog resources were added to that footprint in 2004 when Sun Gro acquired Lameque Quality Group. Also that year, the acquisition of the professional growing media business of The Scotts Company and their respected Metro Mix brand significantly enhanced Sun Gro's ability to service growers in the Eastern part of North America with premium bark-based products.

Timeline