Denver hydroponics company acquires Maine-based Grow Depot stores
Courtesy / GrowGeneration
A map from a Jan. 25 investor road show, prior to recent acquisitions, shows 39 GrowGeneration stores in the U.S. The company is expanding in states where marijuana use has been legalized or may soon be.
Grow Depot of Maine, which operates two indoor gardening stores in Auburn and Augusta, has been acquired by the country’s largest chain of hydroponic garden centers.
GrowGeneration Corp. (Nasdaq: GRWG), based in Denver, purchased the business for an undisclosed price. As part of the deal, Grow Depot founder Jim Parisi, co-owner Anthony Parisi and their 10 employees will join GrowGeneration’s team of 450, according to a news release Monday.
With the two new stores, at 245 Center St., Auburn, and 171 Capitol St., Augusta, GrowGeneration now operates five hydroponic garden centers in Maine and a total of 42 branches in 11 states. Hydroponic gardening is a type of plant cultivation without the use of soil and with little need for water.
Other Maine locations are in Biddeford, Brewer and York. The company said it expects the operations in the state to generate over $20 million in revenue this year.
GrowGeneration’s current 2021 guidance calls for total revenue of $335 million to $350 million, as much as an 82% increase over revenue in 2020 of $192 million. Propelled by the expansion of legalized marijuana use across the U.S., GrowGeneration grew revenue last year by 140% from the 2019 total of $80 million.
"It's a very exciting time in Maine's adult-use market, and we're pleased to expand our footprint in the state through our acquisition of Grow Depot, which has proudly served the Central Maine area for nearly a decade," said Darren Lampert, GrowGeneration's CEO, in the news release.
Since the company launched in 2014 and went public two years later, much of its scale-up has been through acquisition. Just last week GrowGeneration purchased another two-store business, in Washington, although a current store in Seattle is closing as a result.
The company plans to have 55 stores by the end of the year, according to the release, and has targeted expansion in Arizona, Illinois, Missouri, Pennsylvania, New Jersey and New York.
There are roughly 1,000 hydroponic garden stores in the U.S., according to GrowGeneration. Industry estimates predict the global hydroponics system market will reach $16 billion by 2025.
In Westbrook, plans for a four-story mixed-use building include a 70,000-square-foot “vertical farm” using hydroponic cultivation.
Most Recent
Most Recent
0 Comments