The increasingly acquisitive hydroponics retailer GrowGeneration (NASDAQ:GRWG) is about to add yet another new asset to its portfolio. The company announced Monday that it has signed an agreement to purchase peer The GrowBiz, a chain of hydroponics stores located in California and Oregon. As is its habit, GrowGeneration did not divulge key terms nor the price of the arrangement.
The GrowBiz, which operates what its would-be owner describes as the third-largest hydroponic retail chain, was founded in 2010. One of its founders, Ross Haley, was once CEO of Hawthorne Gardening, now a subsidiary of Scotts Miracle-Gro, and will serve as an advisor to GrowGeneration. The GrowBiz controls five stores located in California and Oregon -- both states that have legalized recreational marijuana.
This is the third acquisition GrowGeneration has announced in recent weeks. Previously, it revealed it had bought Big Green Tomato, a company that owns two hydroponics stores in Michigan, and Arizona's Hydroponics Depot.
As for this latest buy, in its press release touting the deal GrowGeneration quoted its CEO, Darren Lampert, as saying that The GrowBiz "represents our continued investment in purchasing the 'best of breed' hydroponic operations in the U.S. and strengthening our management team with seasoned veterans from our industry."
The company said The GrowBiz should generate revenue of nearly $50 million annually. Owning its five stores will give GrowGeneration a total of 10 outlets in California, and two in Oregon. The GrowBiz has over 60 full and part-time employees, its acquirer said.
The deal is expected to close before the end of this year.