NEWS BRIEF

Marijuana hydroponics firm to buy nutrient business for $125 million

Marijuana hydroponics equipment and supplies company Hydrofarm Holdings Group struck a deal to acquire nutrient producer House & Garden for roughly $125 million.

It’s Hydrofarm’s second acquisition this year.

The Fairless, Pennsylvania-based cannabis ancillary company entered a cash deal for Humboldt County, California-based House & Garden and several related businesses, which manufacture nutrients under the House & Garden and Mad Farmer brands.

“House & Garden’s expansive distribution network across nearly 40 states and 10 countries provides a tremendous opportunity for us to extend our global reach and market penetration,” Hydrofarm Chair and CEO Bill Toler in a Monday news release.

The company said it anticipates roughly $55 million in net sales from House & Garden during the 2021 calendar year.

“Hydrofarm intends to continue expanding its lineup of proprietary branded products in the lighting, climate control, nutrients and growing media categories via acquisition and in-house innovation,” the news release noted.

The company recently acquired another California-based plant nutrient manufacturer and distributor, Field 16, for $78.1 million.

Hydrofarm also recently priced a public offering of shares to raise approximately $270 million.

Shares of Hydrofarm trade as HYFM on the Nasdaq exchange.

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