GrowGeneration Continues Acquisition Spree, Buys Char Coir

GrowGeneration Corp. GRWG agreed to acquire Char Coir, a professional grade growing medium made from 100% coconut fiber, for an undisclosed price.

Char Coir’s products are labeled as 100% biodegradable and compostable, providing a more durable solution compared to rockwool.

GrowGen noted that these products should contribute to the company’s revenue in 2021 with more than $15 million.

"Private label offerings continue to be a focus for GrowGeneration and our future growth as a company, and bringing an innovative product company like Char Coir into our portfolio is a positive step forward for those plans," GrowGeneration CEO Darren Lampert told Benzinga. "As cannabis cultivators focus more on sustainability and environmental impact, we believe Char Coir's 100% biodegradable growing medium will be positioned to drive incredible growth for GrowGen." 

Char Coir CEO Michael Leone says the company aims to produce high-quality growing mediums “with minimal impact on the environment."

"We are pleased to partner with GrowGen, one of the most trusted names in hydroponic and organic gardening, to make our RHP-certified, nutrient-buffered products available to even more growers," he said. 

Previous Activities

Working on its goal to obtain and run a total of 55 garden centers in the U.S. by the end of the year, GrowGen already had six purchases in 2021. In January, it has bought Washington-based Indoor Garden & Lighting, the second was the acquisition of Grow-Depot, and then the purchase of Grow Warehouse.

The company also acquired San Diego Hydroponics & Organics, and — last week — signed two leases in Los Angeles for a new Super Hydroponic Garden Centers.

With all these purchases and leases, the company owns a total of 52 garden centers already.

In addition, GrowGen says revenue for its pre-announced fourth-quarter record earnings hovered $61.5 million. It has also advanced its 2021 revenue guidance to $335 million-$350 million and raised its 2021 adjusted EBITDA guidance to $38 million-$40 million.

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