GrowGeneration Corp. (NASDAQ: GRWG), (“GrowGen”or the “Company”) the nation’s largest chain of specialty hydroponic and organic garden centers, today announced its acquisition of Aquarius Hydroponics, an indoor-outdoor garden supply center specializing in hydroponics systems, lighting and nutrients. Aquarius Hydroponics is one of the largest hydroponics retailers in New England, with annual revenues approaching $5 million. With the acquisition of Aquarius Hydroponics, GrowGen’s portfolio of hydroponic garden centers now includes 52 stores across 12 states.
“The Aquarius Hydroponics acquisition is a testament to our continued investment in best-in-class hydroponic suppliers in emerging adult-use markets across the U.S.,” said Darren Lampert, GrowGen’s CEO. “Importantly, it represents our entry into Massachusetts’ cannabis market, which is projected to become a $1 billion industry in 2021.”
Founded in 2013, Aquarius Hydroponics carries both indoor and outdoor garden supplies at its 14,600-square-foot retail location in Agawam, Massachusetts. As part of the transaction, Aquarius Hydroponics’ team of 10 employees will join GrowGen’s team of over 500 grow professionals. Owner Mark Hynes also will stay on in a technical support position.
“Aquarius Hydroponics has long been proud to serve growers in Western Massachusetts with our comprehensive catalog of indoor-outdoor growing supplies. Joining forces with GrowGeneration, the nation’s clear leader in hydroponics retail, allows us to leverage our combined decades of cultivation experience to meet the growing demands of Massachusetts’ flourishing legal cannabis industry,” said Aquarius Hydroponics founder John Eaton.
The Aquarius Hydroponics acquisition is GrowGen’s seventh this year and follows yet another quarter of record earnings. In January, the Company pre-announced fourth-quarter revenues of $61.5 million, bringing full-year 2020 revenue to $192 million, up 140% from 2019. Same-store sales increased 63% for full-year 2020, compared to the previous year. The Company also raised its 2021 revenue guidance to $335 million–$350 million and raised its 2021 adjusted EBITDA guidance to $38 million–$40 million. GrowGen plans to have 55 garden center locations by the end of 2021.
