Hydrofarm continues acquisition spree, buys Canadian cannabis firm for $83M

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Hydrofarm Holdings Group is on an acquisition tear in the cannabis cultivation infrastructure space.

In its fourth purchase of the year, the Pennsylvania-based company bought Canadian plant nutrients firm Greenstar Plant Products in an $83 million cash-and-credit deal.

According to a news release, Greenstar – which owns the Grotek and Gaia brands of plant nutrients – will become a wholly owned subsidiary of Hydrofarm.

Previously in 2021, Hydrofarm acquired Oregon-based hydroponics equipment manufacturer Aurora Innovations along with three California nutrient brands, Heavy 16, House & Garden and Mad Farmer.

The acquisition of Greenstar was a “natural next step in our efforts to broaden our company’s footprint and strengthen our product portfolio,” Hydrofarm CEO Bill Toler said in the release.

Hydrofarm projects that Greenstar will generate about $26 million in sales this year, a 50% increase over 2020.

Hydrofarm trades on the Nasdaq under the ticker symbol HYFM.