urban-gro Inc has completed the acquisition of MJ12 Design Studio and associated company 2WR+ Partners (2WR of Georgia and 2WR of Colorado). MJ12 Design Studio Principal Sam Andras, AIA, will join urban-gro’s senior leadership team in the role of executive vice president of professional services and will lead urban-gro ’s full building and cultivation systems design services.
The $9.1-million transaction was funded with a combination of cash and UGRO common stock (issued out of corporate treasury stock from prior buyback program), and includes contingent consideration of up to $2 million based on achievement of certain performance metrics.
“With the inclusion of architectural design to complement our existing services, we can now offer fully integrated design solutions for processing, extraction, and retail facilities as well,” urban-gro Chairman and CEO Bradley Nattrass said. “With this acquisition and continuing to work closely with our existing strategic manufacturing partners, we are much closer towards delivering complete, end-to-end turn-key indoor [Controlled Environment Agriculture] facilities for our clients.”
“The past successes of urban-gro and MJ12 Design Studio provide an excellent framework for how our teams will come together as one entity moving forward, providing significant value to our customers,” Nattrass added.
“Through the synergies of our two firms, we can leverage the collective experience and expertise of our professionals to deliver high-performance facilities that will allow for cultivating the highest quality production of plant-based medicines and food crops at the local level across the globe,” Andras said.
urban-gro Chief Financial Officer Dick Akright said, “urban-gro will continue to work with other architectural partners at our clients’ request. Similarly, 2WR+ Partners will continue to work with and develop new relationships with other engineering and design partners, as well as provide services in non-cultivation markets including education, health care, commercial, civic, multi-family and hospitality.”