GrowGeneration Expands Michigan Footprint Via Big Green Tomato Deal
GrowGeneration Corp. (NASDAQ:GRWG) confirmed the acquisition of Big Green Tomato.
The Denver-based hydroponics retail chain, which serves the cannabis companies in the U.S, obtained the two-store chain, which generates approximately $16 million in revenue yearly.
Under the deal, GrowGen bought the retail property in Battle Creek, which spans 10,000 square-feet.
Following the acquisition, GrowGen anticipates the Michigan market to boost its revenue to more than $40 million.
Moreover, the deal increases the total number of GrowGen hydroponic garden centers in the Great Lakes State to six, including locations in Battle Creek, Grand Rapids, Livonia, Taylor, South Lansing, and West Lansing.
"Michigan's recreational cannabis market is growing exponentially," said Tony Sullivan, GrowGen's COO.
According to a Tuesday press release, the state's recreational cannabis market is poised to exceed $1 billion in the years to come.
Moreover, it's among the highest medical marijuana markets in the country alongside California, as per Statista.
"We're encouraged by new state regulations that will allow for more cultivation licenses, which in turn will fuel continued expansion and growth for GrowGeneration's customer base in the state," Sullivan added.
Meantime, last week, GrowGen debuted in Arizona through the acquisition of Phoenix-based Hydroponics Depot.
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