Acquisition Brings Total Number of GrowGen
Locations to 36
DENVER, Nov. 17, 2020 /PRNewswire/ - GrowGeneration Corp.
(NASDAQ: GRWG), ("GrowGen" or the "Company") the nation's largest
chain of specialty hydroponic and organic garden centers, today
announced it has completed its acquisition of The GrowBiz, the
nation's third-largest chain of hydroponic garden centers, with
five stores across California and
Oregon. The acquisition brings the
total number of GrowGen hydroponic garden centers to 36, with new
locations in Rocklin, Cotati, Santa
Cruz and San Luis Obispo,
California, and Portland,
Oregon.
Founded in 2010 by Ross and Ryan
Haley, The GrowBiz brings annual revenues approaching
$50M and a team of experienced
executives and growing professionals to GrowGen's portfolio of
nearly 400 employees. Additionally, Ross
Haley, the former CEO of Hawthorne Gardening Company, a
division of Scotts Miracle-Gro, and General Hydroponics, joins
Bob Nardelli, former CEO of Home
Depot, as a senior strategic advisor to the Company.
"California continues to be a
critical market for GrowGen, accounting for 20 percent of the
nation's legal cannabis sales. The GrowBiz locations are
complementary to our current footprint, bringing our total number
of GrowGen stores in California to
ten and Oregon to two," said
Darren Lampert, GrowGen's co-founder
and CEO. "Given the country's changing political landscape and
growing support for marijuana legalization – as evidenced by all
five states with marijuana ballot measures passing them earlier
this month – we expect to see more counties in California and Oregon permitting more cultivation in 2021 and
beyond."
The GrowBiz acquisition marks the Company's sixth acquisition
this year and comes on the heels of record earnings. Just last
week, the Company announced third-quarter revenues of $55.0 million and adjusted EBITDA of $6.6 million – marking the eleventh consecutive
quarter of record revenues and EBITDA for the Company. Accordingly,
the Company increased its 2020 revenue guidance to $185 million-$190
million, and adjusted EBITDA to $19.0
million-$20.0 million. It also
updated revenue and adjusted EBITDA guidance for 2021 to
$280 million-$300 million, and $34
million-$36 million,
respectively.
Added Lampert, "Our success is directly correlated to the growth
of the cannabis industry, which is experiencing substantial growth.
Our goal is to have GrowGen gardening centers in a minimum of 15
states next year – up from 11 this year – through a combination of
acquisitions and new store build-outs."
For more information about GrowGeneration, or to locate its
stores, please visit www.growgeneration.com.
About GrowGeneration Corp.:
GrowGen owns and operates specialty retail hydroponic and
organic gardening stores. Currently, GrowGen has 36 stores, which
include 5 locations in Colorado,
10 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, 2 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