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Scotts Miracle-Gro: Big Dividend

An $8 payout sprouts.

Scotts Miracle-Gro

(SMG) - Get Scotts Miracle-Gro Company Class A Report

declared a special one-time cash dividend of $8 per share, payable March 5 to shareholders of record Feb. 26.

Combined with the recently completed modified Dutch auction tender offer, in which the Marysville, Ohio, company expects to purchase $245 million worth of common shares, ScottsMiracle-Gro will have completed its plan to return approximately $750 million to its shareholders.

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The two transactions are being funded through increased borrowings under the company's new $2.15 billion senior secured credit facilities.

"Our recent actions should be viewed as a sign of confidence in the continued success of our business," said CEO Jim Hagedorn. "Whether by returning cash to shareholders, achieving a more efficient capital structure, driving growth in our existing portfolio or investing in new growth opportunities, we remain focused on driving shareholder value."

Shares rose $1.09 late Friday to $54.46.