GrowGeneration Makes Another Acquisition

GrowGeneration Corp . (NASDAQ: GRWG) can’t seem to stop growing and said it is buying Southern California -based Canopy Crop Management and its complete portfolio of products, including the Power SI brand of silicic acid-enriched fertilizers. The company did not disclose how much it paid for Canopy Crop. It is the second acquisition in Southern California this month and the third acquisition in the state since November.

Canopy Crop Management was founded in 2019 and is recognized as the industry’s leading silicic acid company. Power SI will continue to be sold through Canopy Crop Management to all hydroponic retail stores including Grow Generation’s 39 locations.

“Private label expansion has become a strategic priority for GrowGen, and a key component of our long-term revenue generation plan,” said Michael Salaman , GrowGen’s President and Co-Founder. “We are proud to bring Canopy Crop Management and its founder Rex Gill under our umbrella. Rex brings his unique technologies and proprietary products to GrowGen and will be instrumental in leading private label product development within the nutrient and additive space.”

GrowGen’s Growth

Since 2014, GrowGen has acquired 34 stores and opened 16 new stores. The company has identified Ohio, Illinois, Pennsylvania, New York, New Jersey, Massachusetts and Missouri as new markets where it plans to open new operations.  On August 10, 2020 it acquired the assets of Benzakry Family Corp, d/b/a Emerald City Garden, in Concord, Ca. On October 12, 2020, the company acquired the assets of Hydroponics Depot, LLC, a single store located in Phoenix, Arizona. On October 20, 2020, the company acquired the assets of Big Green Tomato, a two-store chain in Battle Creek and Taylor, Michigan. On November 17, 2020, the company acquired the assets of The GrowBiz, which we believe is the third-largest chain of hydroponic garden centers in the United States, with four stores in California and one store in Oregon. In connection with the GrowBiz acquisition, Ross Haley, the founder of The GrowBiz and the former CEO of Hawthorne Gardening Company, a Division of Scott’s Miracle-Gro, joined the Company as a senior strategic advisor.

“I started Canopy Crop Management with the goal of providing the highest-quality formulations, and I’m fortunate to find a partner like GrowGen, one of the most trusted names in hydroponic and organic gardening,” said Gill, Canopy Crop Management’s CEO. “I look forward to creating new and innovative silicic acid formulas and organic pesticides and fungicides that are much more cost-effective than what is currently on the market.”

 

Debra Borchardt

Debra BorchardtDebra Borchardt

Debra Borchardt is the CEO, Co-Founder, and Editor-In-Chief of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Masters degree in Business Journalism from New York University.


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