S&P: Scotts unaffected

Standard & Poor's said Monday that the ratings and outlook on The Scotts Co. (BB/positive/--) would not be affected by the company's announcement that it will acquire Smith & Hawken Ltd. for about $72 million, including the assumption of $14 million of debt.

Scotts will use its revolving credit facility to fund the transaction, which is expected to close after the company's 2004 fiscal year ending Sept. 30.

S&P said the transaction will expand Scotts' presence in lawn and garden categories, as well as to additional distribution channels. Scotts' ratings could still be raised if the company can demonstrate a sustainable improvement in its credit protection measures, as well as moderate financial policies during the outlook period.

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