GrowGeneration Corp., the nation’s largest chain of specialty hydroponics and organic garden centers, announced on Wednesday, July 28, the signing of an asset purchase deal to acquire HGS Hyrdo. Hydro is the nation’s third-largest chain of hydroponic garden centers. With six stores across Michigan, and a seventh store slated to open in the fall of 2021, this transaction is expected to close before the end of the fiscal year-end 2021.
Founded in 2015 by Rocky Shaeena, HGS Hydro is the largest chain of hydroponic garden centers in Michigan and generated approximately $50 million in revenue in 2020. When the deal closes, the transaction will also bring the total number of GrowGen hydroponic garden centers in Michigan to 14, and the total number of stores to 65.
Darren Lampert, Grow Gen’s CEO, said, “We are excited to add HGS Hydro to our portfolio of stores before year end, with its impressive leadership and commercial teams. The addition of HGS Hydro will propel Michigan to GrowGen’s second-largest state behind California. Michigan is one of the fastest-growing states for medical and recreational cannabis sales.” He continues to say, “We look forward to building on HGS Hyrdo’s experience as we continue to expand our commercial footprint. This acquisition represents our continued focus on purchasing ‘best of breed’ hydroponic operations in the U.S. and strengthening our management team with seasoned veterans from our industry.”
HGS Hydro’s CEO, Rocky Shaeena, notes, “The combination of HGS Hydro and GrowGeneration will further solidify GrowGen’s leadership position as the nation’s largest chain of hydroponic garden centers. As one of the pioneers of our industry, we are excited to bring our years of experience, insight, and relationships to the GrowGen team to assist in the Company’s continued growth and success.”
The Company’s COO, Chris Kiryakoza, gave a statement saying, “At HGS Hydro, my biggest priority has always been serving our loyal customers and providing an abundance of inventory at all times. We have grown tremendously as a company in the past, and I believe merging with GrowGeneration will help us continue to grow with the best service and selection possible for our customers.” It’s mergers and acquisitions, such as the acquisition of HGS Hydro, that helps expand the cannabis industry to its full potential.