GrowGen Archives

StaffApril 20, 2021

GrowGeneration Corp . (NASDAQ: GRWG ) is continuing to expand its universe by buying Downriver Hydroponics, a Michigan -based indoor garden supply center in Wayne County. The company did not disclose the value of the deal, however, it did say Downriver Hydro is the area’s largest hydroponics store, with annual revenues approaching $10 million. With the acquisition of Downriver Hydro, GrowGen’s portfolio of hydroponic garden centers now includes 53 stores across 12 states, with seven of those locations in Michigan.

“Michigan’s cannabis market is expected to generate $3 billion in revenue over the next three years, making it an ideal place for further investment and expansion,” said Darren Lampert, GrowGen’s CEO. “We continue to look for best-in-class hydroponics stores in mature and emerging markets, and Downriver Hydro has a strong customer base, as well as an experienced and knowledgeable staff, led by owner Scott Brownlie .”

The Downriver Hydroponics acquisition is GrowGen’s ninth this year and follows yet another quarter of record earnings. Just last month, GrowGen announced record full-year 2020 revenues of $193 million, an increase of 143% year-over-year. Same-store sales increased 63% for full-year 2020, compared to the previous year. The Company also raised its 2021 revenue guidance to $415 – $430 million and raised its 2021 adjusted EBITDA guidance to $48 – $51 million. GrowGen plans to have 60 garden center locations in 15 states by the end of 2021.

Brownlie and his team will stay on at GrowGen as part of the transaction, and operate the company’s seventh location in the state. GrowGen also operates hydroponic garden centers in Battle Creek, Grand Rapids, Livonia, Taylor, South Lansing, and West Lansing.

“Downriver Hydro has proudly served Michigan’s indoor growers for over a decade with our exceptional team of cultivation experts, commitment to hydroponics education, and vast inventory of high-quality garden supplies,” said Brownlie. “We are excited to join GrowGeneration, the nation’s largest hydroponics retailer, to leverage our combined resources, expertise, and inventory to meet the state’s growing number of cultivators.”

According to industry sources, Michigan’s cannabis market is:

One of the fastest-growing cannabis markets in the country, with a total of 2020 cannabis sales generating $984 million in revenue.
Projected to generate over $3 billion in cannabis sales within the next three years.
The second-largest medical marijuana market in the country, behind California.

StaffMarch 22, 2021

Hydroponic chain store giant GrowGeneration Corp . (NASDAQ: GRWG ) is buying the leading wholesale agriculture platform Agron.io for an undisclosed amount. GrowGen said it expects Agron will contribute $20 million in revenue for this year. The stock was trading higher in early trading to lately sell at $56.94.

Agron.io offers commercial pricing, real-time inventory, and one of the largest product catalogs in the industry, with over 10,000 products in over 60 categories, including greenhouses, vertical benching, controlled environmental systems, HVAC, and industrial equipment. The platform manages real-time product updates, tier-pricing changes, case quantities, pallet quantities, profit margin projections, hazmat fees, ETL/UL listings and state chemical regulations, as well as guarantees the latest shipping quotes using API generated pallet and box shipping rates.

“As additional legal cannabis markets continue to open up across the country, we are expanding and enhancing our commercial services, from facility design and consulting to volume product pricing, to deliver best-in-class support for large growers,” said Darren Lampert , GrowGen’s CEO. “The Agron.io platform is a strategic and exciting addition to our portfolio and comes with a highly skilled team of customer service experts trained to help growers navigate the complexities of planning, growing and sustaining a commercial agriculture facility.”

The company said in a statement that Agron.io was launched in 2016 and is based in Denver, Colorado. Agron.io’s team of specialists has overseen more than 200 buildouts, managing every aspect from light layouts and photosynthetic photon flux density (PPFD) calculations, to vertical benching, irrigation and HVAC design, to fertigation and integrated pest management. They also provide financing options and manage administrative matters such as online purchasing history and order tracking.

“We developed Agron.io to provide next-level support for commercial growers, whose orders are extremely time-sensitive,” said John Dreibelbis, Agron.io’s CEO. “By joining forces with GrowGen, we can reach even more commercial growers with enhanced services, competitive pricing, and drop-shipping from the nearest GrowGen distribution center.”

With the addition of Agron.io Powered by GrowGen for commercial accounts, GrowGen said it will continue to operate its e-commerce platform GrowGeneration.com for retail and craft cannabis and organic produce growers. The GrowGeneration.com site features online ordering of over 10,000 products, ranging from organic nutrients and soils to advanced lighting technology; enhanced order tracking; buy online pick up in-store (BOPIS) capability; a virtual garden center with 16 product departments; and a GrowPro channel featuring educational and how-to content from grow specialists.

Jeff Gordon, Co-Founder, and CTO stated, “Agron.io was created to give commercial customers real-time data to manage their purchasing and logistics. Connecting our technology with the Grow Generation distribution network, and a world-class team of commercial experts, we now have a platform that is a complete game-changer for our evolving industry.”

The Agron.io acquisition is GrowGen’s eighth this year and follows yet another quarter of record earnings. 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.

StaffMarch 15, 2021

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.

Debra BorchardtNovember 2, 2020

GrowGeneration Corp. (NASDAQ: GRWG) continues to add to its stable of hydroponic stores with the latest acquisition being The GrowBiz. GrowGen did not disclose how much it paid for the chain, which is the country’s third-largest, but did note that it is expected to deliver $50 million in annual revenues. The deal is expected to close before fiscal year-end 2020.

The GrowBiz was founded in 2010 by Ross and Ryan Haley and has five stores across California and Oregon. It brings a team of experienced executives and more than 60 full and part-time employees. Prior to founding The GrowBiz, Ross Haley served as CEO of Hawthorne Gardening Company, a division of Scotts Miracle-Gro, and General Hydroponics, two recognized leaders in the hydroponics industry. Ross Haley will become a senior strategic advisor to the Company.

“We are excited to add The GrowBiz to our portfolio before year-end, with its impressive leadership and commercial teams,” said Darren Lampert, GrowGen’s CEO. “We look forward to building on their combined experience and expanding our commercial footprint. The GrowBiz acquisition represents our continued investment in purchasing the ‘best of breed’ hydroponic operations in the U.S. and strengthening our management team with seasoned veterans from our industry.”

The acquisition will bring the total number of GrowGen hydroponic garden centers in California to ten and Oregon to two. The new GrowGen locations include Rocklin, Cotati, Santa Cruz and San Luis Obispo, California, and Portland, Oregon.

The GrowBiz’s CEO Ross Haley said, “Hydroponics have been a staple in cannabis cultivation and as states across the country continue to legalize, hydroponics stores are an incredible resource for consumers to learn about different cultivation methods. I’ve seen first-hand over the years how our stores have helped people diversify their gardens, so they are able to cultivate and produce cannabis – it’s empowering. GrowGeneration’s continued expansion is a testament that the stigma of cannabis prohibition is diminishing, and cannabis is indeed a legitimate business. I look forward to moving to an advisory position with GrowGeneration as I continue to build out Lbs. Distribution – a licensed cannabis distribution company in California .”

This deal comes just a few weeks after the company announced it was getting into the Arizona market with the acquisition of Hydroponics Depot, Phoenix’s largest indoor and outdoor garden center. The company also did not disclose how much was paid for the company and whether the deal was stock or cash or a combination. “We’re excited to add Hydroponics Depot to our growing portfolio, with year-to-date sales in excess of $5 million and year-over-year growth at 50 percent,” said Tony Sullivan, GrowGen’s COO. “Importantly, it represents our 11th state and our first retail operation in Arizona, a key market in GrowGen’s growth plan. We see tremendous potential from both a medical and recreational standpoint.”

GrowGen currently has 31 stores, which include 5 locations in Colorado, 6 locations in California, 2 locations in Nevada, 1 location in Arizona, 1 location in Washington, 6 locations in Michigan, 1 location in Rhode Island, 4 locations in Oklahoma, 1 location in Oregon, 3 locations in Maine and 1 location in Florida.