Hydrofarm Holdings Group, an independent manufacturer and wholesaler of agricultural products and hydroponic equipment, announced that is has completed a $55 million equity financing round. In addition to strategic and institutional investors, the financing round including an investment from one of the largest private equity firms in the cannabis industry, Serruya Private Equity (SPE).
Annually, Hydrofarm brings in roughly $250 million in revenue, making the company significantly larger than many of the major players in the cannabis industry, such as MedMen ($39.8 million) or Aurora Cannabis (CAD$18 million). The company plans to use the financing to help fund growth opportunities in the global cannabis market; which includes mergers and acquisitions, expanding its distribution capability, and growing its product offerings and service capabilities.
“We are very excited about the significant growth opportunity in the broader global cannabis end market,” said SPE Managing Director, Michael Serruya. “Hydrofarm represents a unique opportunity to help the industry grow by creating a one-stop shop for all market participants to purchase hydroponics equipment and horticultural products, through its network of authorized resellers, for high quality, efficient cultivation.”
With more than four decades of experience in hydroponics and indoor gardening, Hydrofarm is poised to become a powerful force in the legal cannabis industry. As a manufacturer and distributor of hydroponic equipment and supplies, Hydrofarm has access to more than 1,500 hydroponic and gardening retailers across North America and touts over 5,000 product SKUs ranging from nutrients and lighting solutions.
“The strong investor response to this financing is a testament to Hydrofarm’s business strategy and position as one of the dominant players in the industry, as well as demand to participate in the growth of the global cannabis industry though an established, U.S. domiciled and federally-legal company,” said Adam Stern, CEO of SternAegis Ventures and Head of Private Equity Banking of Aegis Capital.