Hydrofarm Holdings Group entered an agreement to acquire Illinois-based Innovative Growers Equipment (IGE) for $58 million, the cannabis cultivation equipment maker’s fifth acquisition in 2021.
Pennsylvania-based Hydrofarm said in a news release that it will fund the acquisition through cash, a new credit agreement and $11.6 million in stock.
The transaction is expected to close in early November.
IGE is a manufacturer of LED lighting systems, racking and horticulture benches, a product range that complements Hydrofarm’s product line.
Hydrofarm said it expects IGE to generate $48 million in sales in 2021.
Since May, Hydrofarm has acquired Greenstar Products in Canada, Aurora Innovations in Oregon and House & Garden and Heavy 16 in California.
2024 MJBiz Factbook – now available!
Exclusive industry data and analysis to help you make informed business decisions and avoid costly missteps. All the facts, none of the hype.
Featured inside:
- Financial forecasts + capital investment trends
- 200+ pages and 49 charts highlighting key data figures and sales trends
- State-by-state guide to regulations, taxes & market opportunities
- Monthly and quarterly updates, with new data & insights
- And more!
In addition, Hydrofarm announced a $125 million senior secured, seven-year loan at a current annual interest rate of 6.5%.
Some of the funds from that credit facility will be used for the IGE acquisition.
Hydrofarm also released preliminary financial results for its third quarter ended Sept. 30.
Those results include estimated net income between $13.3 million and $18.3 million, based on sales ranging from $121 million to $124 million.
