Benzinga | Aug 24, 2021 01:01PM EDT

GrowGeneration Continues Acquisition Streak, Buys California-Based Commercial Grow Supply

GrowGeneration Corp. (NASDAQ:GRWG) is purchasing Commercial Grow Supply, a hydroponic superstore located in Santa Clarita, California.

The move follows the acquisition of Hoagtech Hydroponics, a leading hydroponic equipment and indoor gardening store that serves the Bellingham, Washington area.

Based in Denver, the company announced Tuesday that the acquisition of Commercial Grow Supply brings the number of GrowGen locations in the Golden State to 22. However, the terms of the deal were not disclosed.

Commercial Grow Supply was founded in 2011 by Sevan Derohanian. Today, its annual revenues are heading toward $10 million.

Darren Lampert, GrowGeneration's CEO called southern California a "vital market" for the company, as it runs ten stores in the area.

"As the leading hydroponics retailer in Santa Clarita, Los Angeles County's third-largest city, Commercial Grow Supply boasts a devoted customer base and unmatched cultivation expertise which will help GrowGen better serve Southern California's growers," Lampert highlighted.

Sevan Derohanian, Commercial Grow Supply's founder, said that "partnering with GrowGeneration, the nation's leading hydroponics retailer, empowers us with the resources to continue serving Southern California's increasing number of growers, from craft gardeners to large-scale commercial cultivators."

The acquisition of Commercial Grow Supply is Grow Generation's 14th in 2021. By year-end, the company plans to own more than 70 garden center locations.

Earlier this month, the company raised its full-year 2021 revenue guidance to $455 million -- $475 million.

Price Action

GrowGeneration's shares were trading 2.66% higher at $31.90 per share at the time of writing Tuesday early afternoon.

Photo: Courtesy of GrowGeneration Corp.