GrowGeneration Corp . (NASDAQ: GRWG) announced its latest acquisition as the chain continues to add to its nationwide empire. Today, the company said it was buying Aquarius Hydroponics, which is one of the largest hydroponics retailers in New England and was founded in 2013. The stock was slipping by over 3% in early trading to lately sell at $49.76. The average price target for GrowGen stock according to Yahoo Finance is $56.43.
The retailer has annual revenues approaching $5 million and carries both indoor and outdoor garden supplies at its 14,600-square-foot retail location in Agawam, Massachusetts.
“The Aquarius Hydroponics acquisition is a testament to our continued investment in best-in-class hydroponic suppliers in emerging adult-use markets across the U.S.,” said Darren Lampert, GrowGen’s CEO. “Importantly, it represents our entry into Massachusetts’ cannabis market, which is projected to become a $1 billion industry in 2021.”
As part of the transaction, the Aquarius Hydroponics team of 10 employees will join the GrowGen team. Owner Mark Hynes also will stay on in a technical support position. With the acquisition of Aquarius Hydroponics, GrowGen’s portfolio of hydroponic garden centers now includes 52 stores across 12 states.
“Aquarius Hydroponics has long been proud to serve growers in Western Massachusetts with our comprehensive catalog of indoor-outdoor growing supplies. Joining forces with GrowGeneration, the nation’s clear leader in hydroponics retail, allows us to leverage our combined decades of cultivation experience to meet the growing demands of Massachusetts’ flourishing legal cannabis industry,” said Aquarius Hydroponics founder John Eaton.
The Aquarius Hydroponics acquisition is GrowGen’s seventh this year and follows yet another quarter of record earnings. In January, GrowGen 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.