Alongside the rampant market consolidation in the licensed cannabis industry, similar moves can be seen in the hydroponics and garden center supply sector. These are businesses that sell hydroponic and gardening equipment direct to consumers and to commercial buyers, and the effects of a ballooning cannabis industry can be felt among their transactions, as well.
Last year, for instance, ScottsMiracle-Gro and wholly owned subsidiary the Hawthorne Gardening Company acquired Sunlight Supply Co. in a deal filled out by $425 million in cash and $25 million in SMG equity.
Meanwhile, GrowGeneration, based in Denver, has been on a buying spree in the last few months. The company announced this week that it had acquired GreenLife Garden Supply, with locations in Maine and New Hampshire, but that’s just the latest move in the company’s track record of scooping up hydroponic suppliers.
“GreenLife marks our fifth acquisition in 2019, adding $7 million in revenue to our company,” CEO Darren Lampert said in a public statement. “GreenLife, strategically located in the heart of New England, adds one of the largest and highest volume hydroponic chains in the country. Further, this acquisition positions the Company well to service the adjacent states, New York and New Jersey, that have been actively moving toward adult-use legalization. GreenLife has a seasoned team and we are excited that the founder, Sean Reardon, will be continuing in an executive sales and business development role for GrowGen.”
Previously, GrowGeneration secured the following acquisitions:
– Reno Hydroponics (February 2019)
– Palm Springs Hydroponics (February 2019)
– BWGS LLC (February 2019)
– Chlorophyll Inc. (January 2019)
– HeavyGardens.com (September 2018)
“Our mission,” GrowGeneration’s executive team states in a recent press release, “is to own and operate GrowGen branded stores in all the major legalized cannabis states in the U.S. and Canada. Management estimates that roughly 1,000 hydroponic stores are in operation in the U.S. By 2020 the market is estimated to reach over $23 billion with a compound annual growth rate of 32 percent.”
Following the GreenLife Garden Supply acquisition, GrowGen now has 24 locations on the books.