GrowGeneration, a hydroponic and organic garden center chain, is adding to its company’s footprint in Michigan, signing an asset purchase agreement to acquire HGS Hydro, the nation’s third-largest chain of hydroponic garden centers.
The regional chain operates six stores across Michigan with a seventh on the way; the retailer generated approximately $50 million in revenue in 2020.
Denver-based GrowGeneration operates 55 specialty stores in the hydroponic and organic cannabis gardening centers, but also just bolstered its e-commerce platform, offering more than 10,000 products. The chain has a portfolio of store brand products, particularly in the areas of organic nutrients and soils and hydroponic equipment.
Since last year, the company has doubled its store count and the latest transaction will bring the total number of GrowGen hydroponic garden centers in Michigan to 14 and the total number of stores to 65.
"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,” said Darren Lampert, GrowGen's CEO. “Michigan is one of the fastest growing states for medical and recreational cannabis sales. We look forward to building on HGS Hydro'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 was founded by its CEO Rocky Shaeena in 2015, who added: “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."