GrowGeneration Corp., a Denver-based chain of specialty hydroponic and organic garden centers, said it has agreed to acquire GrowBiz, the nation’s third-largest chain of hydroponic garden centers.
GrowBiz has five stores across California and Oregon. The transaction is expected to close before fiscal year-end 2020.
GrowGeneration noted that the acquisition of GrowBiz will increase the total number of its hydroponic garden centers in California to ten and Oregon to two. The new GrowGen locations include Rocklin, Cotati, Santa Cruz and San Luis Obispo in California, and Portland in Oregon.
GrowBiz comes has more than 60 full and part-time employees.
Prior to founding GrowBiz, Ross Haley served as CEO of Hawthorne Gardening Co., a division of Scotts Miracle-Gro, and General Hydroponics, two companies in the hydroponics industry. Upon close of the transaction, Ross Haley will become a senior strategic advisor to GrowGeneration.
GrowGeneration said it expects the addition of GrowBiz to generate annual revenues nearing $50 million.
“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,” said Ross Haley, CEO of GrowBiz.
Currently, GrowGen has 31 stores in the U.S.
California accounts for 20 percent of the legal cannabis sales in the U.S. The state’s cannabis market is projected to touch $5 billion by 2022. Meanwhile, Oregon is expected to achieve $1 billion in recreational and medical cannabis sales in 2020.
In October, GrowGeneration said it has acquired Hydroponics Depot, Phoenix’s largest indoor and outdoor garden center. The acquisition of Hydroponics Depot marked GrowGeneration’s entry into Arizona’s medical cannabis market.
GrowGeneration’s management estimates that almost 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.
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