GrowGeneration (NASDAQ:GRWG), which has been rather acquisitive lately, is adding another regional asset to its portfolio. The company announced Tuesday that it has purchased Big Green Tomato, a two-store hydroponics supply chain based and operating in Michigan.
Neither the purchase price or terms of the deal were disclosed. GrowGeneration did reveal that Big Green Tomato's annual revenue is nearly $16 million.
With its other Michigan assets, GrowGeneration now has six retail stores in the state. Collectively, says the company, they should produce over $40 million in yearly revenue. GrowGeneration's total store count throughout the country is now 31; Michigan is tied with California for the highest number per state. Ultimately, GrowGeneration aims to operate retail outlets in every state.
Big Green Tomato was founded in 2011. Its two stores are located in the municipalities of Battle Creek and Taylor.
GrowGeneration quoted its chief operating officer Tony Sullivan as saying that "Michigan's recreational cannabis market is growing exponentially. 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."
Michigan is currently one of only 11 states in the U.S. that has legalized both recreational and medical marijuana. Quoting data from Statista, GrowGeneration pointed out that Michigan is the second largest medical cannabis market in the country. As for recreational marijuana, the company said sales are expected to reach $400 million to $475 million this year, and will reach over $1 billion within several years.
The Big Green Tomato News comes barely over a week after GrowGeneration announced that it had acquired Hydroponics Depot, an Arizona retailer of such goods. Like the Big Green Tomato deal, price and key terms were not disclosed.