GrowGeneration Continues Acquisition Spree

Cannabtimes

<![CDATA[GrowGeneration Corp. recently announced its acquisition of Downriver Hydroponics, a Michigan-based indoor garden supply center. The headline news was the latest in a long string of garden supply center acquisitions that has seen GrowGen take a growing claim to the market segment. It was the ninth acquisition for GrowGren this year alone, and an opportunity that the company took to raise its 2021 revenue guidance to $415-$430 million. CEO Darren Lampert spoke with Cannabis Business Times about the company’s acquisition spree, noting that these transactions have been a pillar of the company’s growth. GrowGen has targeted “best-in-breed” supply centers that mesh with the company’s outlook and corporate culture.He said this growth is a symptom of a maturing cannabis industry, even while a hefty portion of the business involves hemp, fruits and vegetables. A wave of legalization is sweeping across the U.S., and cultivation resource needs are increasing. Budgets are increasing, too. “In order to properly represent these big, large grows around the country, you need stores that can handle it. The product mix is enormous. We carry 10,000 SKUs, usually at least 3,000 SKUs in our stores. You need distribution. The big growers are just too large—the multi-state operators, the single-state operators. So, we saw this evolution. We saw the sea change switch. And what GrowGen did was we started small.”The company began with four stores in Pueblo, Colo.: 2,000 square feet apiece, $1 million in business. By 2018, GrowGen was pulling in $30 million in annual business, still a far cry from the latest 2021 guidance.Now: GrowGen is in 11 states, with more than 50 stores supplying some of the largest cannabis businesses in the U.S. market, like Cresco Labs, GTI and Trulieve, along with many single-state operators and even smaller outfits, all comprising a customer base that totals…

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Source : GrowGeneration Continues Acquisition Spree

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