Hydroponics chain acquires store
An out-of-state chain of hydroponic and organic garden centers has acquired a local store.
Denver-based GrowGeneration Corp. (OTC: GRWG), or GrowGen, acquired the assets of Grand Rapids Hydroponics, or GRH, which was founded in 2013 and has one location in Grand Rapids, at 524 Leonard St. NW.
Following the acquisition, GrowGen now has four retail and warehouse locations in the Michigan market — one in Grand Rapids, two in Lansing and one in Livonia — and 24 locations nationwide.
“Grand Rapids Hydroponics marks our seventh acquisition in 2019, adding an accretive $8 million in revenue to our company,” said Darren Lampert, co-founder and CEO, GrowGen.
“GRH, strategically located in Grand Rapids, adds one of the largest and highest-volume hydroponic garden centers in the country. Further, this acquisition positions the company to service the ever-growing Michigan market.”
He added that GRH founder Christopher Nicholson will continue on with GrowGen in an executive sales and business development role.
The Michigan hydroponics market is expected to reach $1.3 billion in 2021 and over $1.5 billion by 2023, according to Lampert.
About 277,000 patients are registered with the state to grow their own cannabis or obtain it from 43,000 registered caregivers who can supply a limited number of people, according to Lampert.
The Michigan patient count is second only to California, he said.
GrowGen’s ultimate goal is to own and operate stores in all the major states and provinces where cannabis is legal in the U.S. and Canada.