GrowGeneration Expands In New York Via $9.4M Acquisition Of Mobile Media And MMI Agriculture

GrowGeneration Corp. GRWG, a cannabis-focused chain of specialty hydroponic and organic garden centers, announced Tuesday that it has acquired an Ellenville, New York-based mobile shelving manufacturing and warehouse facility.

What Happened

Under the terms of the agreement, the Denver, Colorado-based base purchased the assets of Mobile Media, Inc and MMI Agriculture, for $9.4 million in cash and stock.

The transaction is inclusive of inventory, fixed assets, and goodwill.

Why It Matters

The deal allows the Denver, Colorado-based company to expand in newly legalizing East Coast states such as New York, New Jersey and Pennsylvania, as well as New England states like Maine, Massachusetts, Connecticut and Vermont where indoor vertical growing will be the preferred method of growing, explained Michael Salaman, GrowGen's president and co-founder.

"Together, GrowGen and MMI increase opportunities for growers by offering not just GrowGen's robust selection of hydroponic solutions and products, but also a mobile system to utilize these products," Salaman added.

MMI is a manufacturer of high-density mobile shelving systems, commonly referred to as "benching," to a variety of industries including agriculture, retail, commercial and government, offering a complete turnkey solution while specializing in design, custom manufacturing, shelving systems and installation across the United States.

MMI occupies two warehouses totaling over 70,000 sq. ft. and will continue to produce products in its manufacturing facility in New York.

In 2021, MMI generated more than $14 million in revenue.

What's Next?

Salaman said the partnership will give GrowGen a stronger presence in today's market. "Combining the adoption of our Ion LED light and cost savings achieved through indoor vertical cultivation using MMI's vertical benching systems is an important part of GrowGen's value proposition."

The company also noted that MMI's high-density mobile carriages are helping growers maximize yields up to 200% more per harvest by having more available canopy space.

In addition, MMI's professional drafters are well-versed in developing floor plans and customized drawings that maximize capacity using the latest CAD software to create systems that meet each client's specific needs and determine final capacity.

More recent news from GrowGen:

Cannabis Movers & Shakers: Turning Point Brands, Zentrela, GrowGen, Marijuana Policy Project

GrowGeneration Relocates Its Arizona Store Making The Largest Hydroponic Garden Center In The State

Cannabis Earnings: GrowGen Announces Record Q3 Revenues, Expects FY21 Sales To Hit $435M-$440M

GRWG Price Action

GrowGen's shares traded 6.81% lower at $12.87 per share at the time of writing on Tuesday.

Photo: Courtesy of Markus Spiske on Unsplash