If it’s Monday that must mean that GrowGeneration Corp . (NASDAQ: GRWG) is buying another company. This week the nation’s largest chain of specialty hydroponic and organic garden centers said it was buying Char Coir, an RHP-certified growing medium made from coconut fiber. Char Coir’s line of coco products is projected to add in excess of $15 million in revenue to GrowGen in 2021, but the company did not disclose the purchase price.
“We are pleased to add Char Coir to our growing portfolio of best-in-class products, particularly as we expand our private label offerings,” said Darren Lampert, GrowGen’s CEO. “Char Coir is the highest-grade coco coir substrate available on the market today; the company’s Coco Cube is revolutionizing the growing industry. We look forward to continued innovation and product development with the talented team of scientists at Char Coir.”
Established in 2014, Char Coir is recognized as the best coco coir on the market. Char Coir said its portfolio of products are 100 percent biodegradable and compostable and a sustainable alternative to rockwool.
“At Char Coir, we are committed to delivering the highest-quality growing mediums with minimal impact on the environment,” said Michael Leone, Char Coir’s CEO. “We take great pride in the consistency and unmatched quality of our products, which have been developed with the grower’s experience and success in mind.”
Leone added, “We are pleased to partner with GrowGen, one of the most trusted names in hydroponic and organic gardening, to make our RHP-certified, nutrient-buffered products available to even more growers.”
The Char Coir acquisition follows yet another quarter of record earnings for GrowGen. In January, the Company pre-announced fourth-quarter revenues of $61.5 million, bringing full-year 2020 revenue to $192 million, up 140% from 2019. Same-store sales increased 63% for full-year 2020, compared to the previous year. The Company also raised its 2021 revenue guidance to $335 million – $350 million and raised its 2021 adjusted EBITDA guidance to $38 million – $40 million. GrowGen plans to have 55 garden center locations by the end of 2021.