In its fourth purchase of 2021, Hydrofoam closed on the acquisition of Canadian nutrient company Greenstar Plant Products, Inc. for a purchase price of $83 million. Hydrofarm funded the deal through a combination of cash and an existing credit facility. Greenstar will become a wholly-owned subsidiary of Hydrofarm.
Previously, Hydrofarm acquired Oregon-based hydroponics equipment manufacturer Aurora Innovations; Aurora International Inc. in Canada; Gotham Properties LLC; and three California nutrient brands, Heavy 16, House & Garden, and Mad Farmer. Hydrofoam has distributed Greenstar’s Grotek and Gaia brands, representing ~50% of Greenstar’s total net sales. These brands join Hydrofarm’s lineup of proprietary branded products in the lighting, climate control, nutrients, and growing media categories.
“With a long relationship that has grown organically over the years, the addition of Greenstar to the Hydrofarm family feels like a natural next step in our efforts to broaden our company’s footprint and strengthen our product portfolio,” said Bill Toler, Chairman and Chief Executive Officer of Hydrofarm.
“We’re excited about the many opportunities becoming a part of Hydrofarm will create and to play a role in the company’s growth,” said Michael Nemirow, CEO of Greenstar Plant Products, Inc. “Over the years, we’ve established a great working relationship based on a passion for the future of Controlled Environment Agriculture and the horticultural market overall, along with our shared commitment to delivering quality products and service.”
Hydrofoam projects that Greenstar will generate about $26 million in sales this year, a 50% increase over 2020. The acquisition continues Hydrofarm’s strategic efforts to acquire manufacturers of branded products in key CEA product categories
Hydrofarm trades on the Nasdaq under the ticker symbol HYFM.