GrowGeneration Strengthens Michigan Presence with the Pending Acquisition of 6 Hydroponics Businesses – New Cannabis Companies
GrowGeneration signs asset purchase agreement to acquire the nation’s third largest chain of hydroponic garden centers
HGS Hydro joins GrowGen’s portfolio and expands the company’s presence in Michigan
DENVER, Jul 28, 2021 / PRNewswire / – GrowGeneration Corp. (NASDAQ: GRWG), (“GrowGen” or the “Company”), the nation’s largest chain of specialized hydroponic and organic gardening centers, announced today that it has signed an asset purchase agreement to acquire HGS Hydro, the third largest chain of hydroponic Garden center in the country with six stores across Michigan and a seventh store slated to open in fall 2021. This transaction is expected to be completed before the end of fiscal year 2021. Founded in 2015 by Rocky Shaeena, HGS Hydro is the largest chain of hydroponic garden centers in the state of Michigan, with sales of around $ 50 million in 2020.
Upon completion of the transaction, GrowGen’s total number of Michigan hydroponic garden centers will increase to 14 and total stores to 65. New GrowGen locations include Shelby Township, Southfield, Sterling Heights, Hazel Park, Walled Lake, Albion, and Imlay City, Michigan.
We’re excited to add HGS Hydro, with its impressive leadership and sales teams, to our store portfolio before the end of the year. The addition of HGS Hydro will make Michigan GrowGen’s second largest state after California. Michigan is one of the fastest growing states for medicinal and recreational cannabis sales.
Darren Lampert, CEO of GrowGen
We look forward to building on the HGS Hydro experience as we continue to expand our commercial presence. This acquisition represents our ongoing focus on acquiring world-class hydroponic operations in the United States and adding seasoned veterans to our management team.
“The combination of HGS Hydro and GrowGeneration will further consolidate GrowGen’s leading position as the nation’s largest chain of hydroponic garden centers. As one of the pioneers in our industry, we are excited to bring our years of experience, knowledge and relationships to the GrowGen team to support the continued growth and success of the company, ”said Rocky Shaeena, CEO of HGS Hydro.
“At HGS Hydro, my top priority has always been to serve our loyal customers and maintain a large inventory of inventory at all times. We have grown tremendously as a company in the past and I believe that merging with GrowGeneration will help us grow with the best possible service and choice for our customers, ”said Chris Kiryakoza, COO of HGS Hydro.
About GrowGeneration Corp:
GrowGen owns and operates hydroponic and organic horticulture specialist trading centers. Currently, GrowGen has 58 stores including 21 locations in California, 8 locations in Colorado, 7 locations in Michigan, 5 locations in Maine, 5 locations in Oklahoma, 2 locations in Nevada, 2 locations in Washington, 4 locations in Oregon, 1 location in Arizona, 1 location in Rhode Island, 1 location in Florida, and 1 location in Massachusetts. GrowGen also operates an online superstore for growers on growgeneration.com and the B2B ERP platform agron.io. GrowGen carries and sells thousands of products including organic nutrients and soils, advanced lighting technology, and state-of-the-art hydroponic equipment that can be used both indoors and outdoors by commercial and home growers.
Original press release
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