Hydrofarm Inc. (NYSE: HY) has announced the acquisition of nutrient company General Organics for $125 million, joining the company’s existing nutrient business. Hydrofarm said that it will pay $125 million in cash and up to $50 million in stock, along with working capital adjustments, for General Organics, which is based in San Diego, CA. The acquisition is expected to close in February.
Hydrofarm, Inc. (HYD) is all in for the cannabis industry. The company recently announced that it has signed a definitive agreement to acquire General Hydroponics, Inc. (GH) for $120 million in cash, plus additional contingent payments of up to $15 million, closing is subject to approval by the board of directors of both GH and HYD. The acquisition will be funded through HYD’s existing cash resources. Founded in 1980, GH is a leading supplier of nutrients for indoor and outdoor horticulture, including hydroponic and soil-based grow operations, as well as consumers of home gardening products, and it has been ranked a Best Company to Work for in California. HYD is a leading manufacturer and market
Hydrofarm is a world leader in the hydroponics industry. With over 50 years in the business, they are looking to expand their reach in the industry not only by acquiring their competition, but also by partnering with businesses such as: High Yields which provides hydroponic cultivation tips and techniques for growing marijuana indoors, and online hydroponic shops that help their customers find products.
Hydrofarm reaches agreement to acquire House & Garden
The manufacturer and supplier of hydroponic nutrients and equipment will expand Hydrofarm’s product range and market position as it accelerates its strategic acquisition strategy. FAIRLESS HILLS, PA, 24. May 2021. (GLOBE NEWSWIRE) – Hydrofarm Holdings Group, Inc. (Hydrofarm) (Nasdaq: HYFM), a leading independent distributor and manufacturer of hydroponic equipment and supplies for controlled environment horticulture (CEA), announced that it has entered into an agreement to acquire House & Garden, Inc, Humboldt Wholesale, Inc, Allied Imports & Logistics, Inc and South Coast Horticultural Supply, Inc. (collectively House & Garden), a manufacturer of quality nutrients under the House & Garden and Mad Farmer brand names, based in Humboldt County, California. The announcement follows Hydrofarm’s recent acquisition of nutrient manufacturer HEAVY 16, accelerating its acquisition strategy. Hydrofarm will fund the purchase price of approximately $125 million from its existing cash resources. Under the terms of the transaction agreement, House & Garden will become an indirect wholly owned subsidiary of Hydrofarm Holdings Group, Inc. Subject to customary conditions, the transaction is expected to close within the next 40 days. House & Garden offers a strong range of plant nutrients that will strengthen our position in the food industry and complement our growing portfolio of quality products for agriculture under controlled conditions.
Bill Toler, president and CEO of Hydrofarm.
House & Garden’s extensive distribution network, which spans nearly 40 states and 10 countries, offers us tremendous opportunities to expand our global reach and market penetration. We admire Hydrofarm’s deep roots as a leader in the hydroponics industry, said Steven Mueller, founder of House & Garden. We share the vision of a greener, more prosperous and sustainable future by responding to this inflection point for houseplants driven by consumer behavior and changing regulations in markets across the country. With this acquisition, Hydrofarm continues its strategic efforts to acquire branded manufacturers in key CEA product categories. The strategic combination of Hydrofarm’s leading distribution platform with the House & Garden and Mad Farmer brands is expected to further expand the combined company’s global customer base. Hydrofarm expects Home & Garden’s net sales for the full calendar year 2021 to be approximately $55 million, a significant increase over the prior year. House & Garden’s margin profile will contribute to Hydrofarm’s revenue growth and, as a result, the company expects the acquisition to improve the company’s adjusted EBITDA margin in fiscal 2021. The multiple of the transaction is less than 7 times House & Garden’s adjusted EBITDA for 2021, excluding synergies. The House & Garden line of brands, including the popular Root Excelurator supplements, and the Mad Farmer brand are the second and third house brands to be added to Hydrofarm’s product portfolio through acquisition this year. Hydrofarm plans to expand its range of own brand products in the lighting, climate control, nutrients and growing media categories through acquisitions and proprietary innovations. Rothschild & Co. is acting as financial advisor and Cozen O’Connor as legal counsel to Hydrofarm. Deloitte Corporate Finance LLC is acting as financial advisor and Dentons LLP is acting as legal advisor to House & Garden. About Hydrofarm Holdings Group, Inc. Hydrofarm is a leading distributor and manufacturer of agricultural equipment and supplies for controlled environments, including high intensity grow lights, climate control and growing environment solutions, as well as a wide range of innovative and proprietary branded products. For more than 40 years, Hydrofarm has helped farmers in the United States and Canada make their businesses easier and more productive. The company’s mission is to provide farmers, growers and ranchers with products that offer greater quality, efficiency, consistency and speed in their growing projects. For more information, please visit: www.hydrofarm.com About Maison et Jardin House & Garden of Humboldt County is based in Arcata, California and manufactures and distributes high-quality plant nutrients and fertilizers worldwide. If you garden as a hobby or grow food and/or flowers for the general public, House & Garden’s range of high quality nutrients and supplements can help you improve the yield and overall quality of your plants. Visit https://house-garden.us for more information. Original press release Stay ahead of the crowd by subscribing to 420 Investor, the largest and most comprehensive subscription service for cannabis dealers and investors since 2013. New Cannabis Ventures is committed to gathering quality content and information about leading cannabis companies to help our readers filter through the noise and stay informed about the most important news in the field. Do you have sensitive information? Please contact us.
In an all stock deal, Hydrofarm has agreed to pay $125 million to acquire its second nutrient company in as many months. The new agreement is with GreenGro Technologies, a company with a history of producing fertilizers and products for the legal marijuana industry. Unlike the previous acquisition of General Hydroponics (GH), Hydrofarm will not be buying the subsidiary fertilizer producers.. Read more about hydrofarm ipo price and let us know what you think.
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