The GrowBiz To Join GrowGen's Portfolio,
Expands Company's Footprint in California and Oregon
DENVER, Nov. 2, 2020 /PRNewswire/ -- GrowGeneration Corp.
(NASDAQ: GRWG), ("GrowGen" or the "Company") the nation's largest
chain of specialty hydroponic and organic garden centers, today
announced the signing of an asset purchase agreement to
acquire The GrowBiz, the nation's third-largest chain of hydroponic
garden centers, with five stores across California and Oregon. The transaction is expected to close
before fiscal year-end 2020. Founded in 2010 by Ross and Ryan Haley, The GrowBiz comes with a
team of experienced executives and more than 60 full and part-time
employees. Prior to founding The GrowBiz, Ross Haley served as CEO of Hawthorne Gardening
Company, a division of Scotts Miracle-Gro, and General Hydroponics,
two recognized leaders in the hydroponics industry. Upon close,
Ross Haley will become a senior
strategic advisor to the Company.
The addition of The GrowBiz is expected to generate annual
revenues approaching $50M. The
acquisition will bring the total number of GrowGen hydroponic
garden centers in California to
ten and Oregon to two. The new
GrowGen locations include Rocklin,
Cotati, Santa Cruz and San
Luis Obispo, California, and Portland, Oregon.
"We are excited to add The GrowBiz to our portfolio before year
end, with its impressive leadership and commercial teams," said
Darren Lampert, GrowGen's CEO. "We
look forward to building on their combined experience and expanding
our commercial footprint. The GrowBiz acquisition represents our
continued investment in purchasing the 'best of breed' hydroponic
operations in the U.S. and strengthening our management team with
seasoned veterans from our industry."
Added Ross Haley, The GrowBiz's
CEO, "Hydroponics have been a staple in cannabis cultivation and as
states across the country continue to legalize, hydroponics stores
are an incredible resource for consumers to learn about different
cultivation methods. I've seen first-hand over the years how
our stores have helped people diversify their gardens, so they are
able to cultivate and produce cannabis – it's
empowering. GrowGeneration's continued expansion is a
testament that the stigma of cannabis prohibition is diminishing,
and cannabis is indeed a legitimate business. I look forward
to moving to an advisory position with GrowGeneration as I continue
to build out Lbs. Distribution – a licensed cannabis
distribution company in California."
California and Oregon Market
and Projections:
- California accounts for 20% of
the nation's legal cannabis sales
- By 2022, California's cannabis
market is projected to hit $5B
- Oregon could achieve
$1B in recreational and medical
cannabis sales in 2020
For more information about GrowGeneration, or to locate its
stores, please visit www.growgeneration.com. For more information
regarding The GrowBiz transaction, please refer to the 8K.
About GrowGeneration Corp.:
GrowGen owns and operates specialty retail hydroponic and
organic gardening stores. Currently, GrowGen has 31 stores, which
include 5 locations in Colorado, 6
locations in California, 2
locations in Nevada, 1 location in
Arizona, 1 location in
Washington, 6 locations in
Michigan, 1 location in
Rhode Island, 4 locations in
Oklahoma, 1 locations in
Oregon, 3 locations in
Maine and 1 location in
Florida. GrowGen also operates an
online superstore for cultivators at growgeneration.com. GrowGen
carries and sells thousands of products, including organic
nutrients and soils, advanced lighting technology and state of the
art hydroponic equipment to be used indoors and outdoors by
commercial and home growers. Our mission is to own and operate
GrowGeneration branded stores in all the major states in the U.S.
and Canada. Management estimates
that roughly 1,000 hydroponic stores are in operation in the U.S.
By 2025, the global hydroponics system market is estimated to reach
approximately $16 billion.
Forward Looking Statements:
This press release may include predictions, estimates or other
information that might be considered forward-looking within the
meaning of applicable securities laws. While these forward-looking
statements represent our current judgments, they are subject to
risks and uncertainties that could cause actual results to differ
materially. You are cautioned not to place undue reliance on these
forward-looking statements, which reflect our opinions only as of
the date of this release. Please keep in mind that we are not
obligating ourselves to revise or publicly release the results of
any revision to these forward-looking statements in light of new
information or future events. When used herein, words such as "look
forward," "believe," "continue," "building," or variations of such
words and similar expressions are intended to identify
forward-looking statements. Factors that could cause actual results
to differ materially from those contemplated in any forward-looking
statements made by us herein are often discussed in filings we make
with the United States Securities and Exchange Commission,
available at: www.sec.gov, and on our website, at:
www.growgeneration.com.
Connect:
- Website: www.GrowGeneration.com
- Instagram: growgen
- Facebook: GrowGenerationCorp
- Twitter: @GrowGenCorp
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SOURCE GrowGeneration