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GrowGeneration Strikes Another Acquisition Deal, Buys Emerald City Garden

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GrowGeneration Strikes Another Acquisition Deal, Buys Emerald City Garden

GrowGeneration Corp. (NASDAQ: GRWG) confirmed the purchase of Concord, California-based Emerald City Garden.

This is GrowGeneration's third takeover in 2020. 

The deal allows GrowGeneration to increase its footprint across the East Bay region.

Emerald City Garden, which is located in the vicinity of both Oakland and San Francisco, "strategically positions GrowGen to capture commercial growers and increase revenue through its sales, marketing and purchasing post our acquisition," Darren Lampert, GrowGeneration CEO said in a statement.

Emerald City Garden, which launched in 2012, expects 2020 sales to reach around $4 million.

In February, Denver-based GrowGeneration, a chain of specialty hydroponic and organic garden centers, bought a hydroponic operation from Healthy Harvest. The deal added "an accretive $12 million in revenue," stated Lampert.

The acquisition of the Lansing, Michigan-based H2O Hydroponics LLC's took place in June.

Lampert pointed out that H2O Hydroponics is the largest hydroponic store in the city, with 2019 sales amounting to roughly $4 million.

Recently, GrowGeneration secured $12.8 million in financing through a private placement deal.

Meantime, projections are that the legal adult-use cannabis market in California would reach $5 billion.

 

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