GrowGeneration Corp., a Denver-based specialty hydroponic and organic garden center giant, is terminating a previously announced deal to purchase HGS Hydro, which owns a chain of hydroponic garden centers across Michigan.
“Following appropriate due diligence and capital allocation analysis, we decided to mutually terminate the acquisition,” Darren Lampert, GrowGeneration’s CEO, said in a news release.
Lampert also said the company’s near-term objective is to build and acquire garden centers in new markets that are growth opportunities.
In a separate move, GrowGeneration said it’s acquiring All Seasons Gardening, an Albuquerque, New Mexico-based, indoor-outdoor garden supply center specializing in hydroponics systems, lighting and nutrients.
GrowGeneration did not disclose the terms of either deal.
The All Seasons acquisition, upon closing, would increase GrowGen’s portfolio of hydroponic garden centers to 63 stores across 13 states.
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“The All Seasons Gardening acquisition is a testament to our continued investment in best-in-class hydroponic suppliers in emerging adult-use markets across the U.S.,” Lampert said in a release.
Recreational marijuana sales in New Mexico are expected to begin in April 2022.
The MJBizDaily Factbook estimates annual adult-use marijuana sales in the state will reach $425 million by the fourth year.