GrowGeneration Stock Slightly Down After Announcing Acquisition Of Mendocino Greenhouse And Garden Supply

Hydroponics Innovator GrowGeneration Corp. GRWG disclosed Thursday that it is acquiring Mendocino Greenhouse and Garden Supply.

The move follows the company's recent acquisition of a hydroponic supply center and the cultivation design innovator, The Harvest Company.

The Denver-based company opted to purchase a Northern California-based hydroponic garden center located in Mendocino, California, with sales that are expected to surpass $8 million on an annual basis.

The acquisition boosts GrowGen's footprint to 58 locations nationwide.

Mendocino Greenhouse and Garden Supply, founded by Nick Halfacre, has been serving growers in Northern California's Emerald Triangle since 2005.

"As the country's largest legal cannabis market, California continues to be a critical market for GrowGeneration," Darren Lampert, GrowGen's CEO said. "The Emerald Triangle continues to represent tremendous market potential. We are proud to expand our presence in the area through highly respected and leading hydroponics stores such as Mendocino Greenhouse and Garden Supply. "

GrowGen's 2021 Acquisition Activity

After buying Washington-based Indoor Garden & Lighting, a two-store chain providing indoor gardening gear and hydroponic materials in Seattle and Tacoma, Washington in February, the company continued its acquisition streak by purchasing a four-store chain of hydroponic and organic garden stores, Grow Warehouse and a two-store chain, Grow Depot, in Maine.

California-based 55 Hydroponics, a hydroponic and organic fertilizer store, was taken over by GrowGen in March, as was Michigan-based Downriver Hydroponics in April.

Price Action

GrowGen's shares were trading 2.13% lower at $40.80 per share at the time of writing.

Photo: Courtesy of GrowGeneration Corp.