GRAND RAPIDS — The assets of Grand Rapids Hydroponics Inc. were acquired by Denver-based GrowGeneration Corp., the largest chain of specialty hydroponic and organic garden centers.
The company aims “to own and operate GrowGen branded stores in all the major legalized cannabis states in the U.S. and Canada,” according to a statement.
Over the last five years, GrowGen has opened or acquired a total of 24 locations, with four retail and warehouse locations in Michigan. The company also has locations in Colorado, California, Nevada, Washington and Maine — which have all legalized cannabis consumption — in addition to Rhode Island, Oklahoma and New Hampshire — which have mixed laws regarding medicinal and recreational use.
While plants traditionally get nutrients from the soil, plants grown with hydroponics obtain nutrients from a solution instead. Hydroponic technology is used by crop growers — often tomato, lettuce, and peppers — for production indoors and has become increasingly popular among growers of cannabis plants.
The deal for Grand Rapids Hydroponics (GRH) marks GrowGen’s seventh acquisition in 2019, adding an accretive $8 million in revenue to the company, according to a statement. The company reported revenue of $19.5 million in the second quarter of 2019 and expects its “Michigan operation” to exceed $15 million, according to a statement.
“GRH, strategically located in Grand Rapids, Mich., adds one of the largest and highest volume hydroponic garden centers in the country,” GrowGen CEO Darren Lampert said in a statement. “Further, this acquisition positions the company to service the ever-growing Michigan market.”