GrowGeneration Corp. (NASDAQ: GRWG), (“GrowGen”or the “Company”) the nation’s largest chain of specialty hydroponic and natural backyard facilities, at present introduced that the Company and HGS Hydro mutually terminated the July 27, 2021, beforehand introduced asset buy settlement. The two corporations will proceed to work collectively to develop a mutually useful working relationship.
“This was a difficult decision regarding the HGS Hydro acquisition, but following appropriate due diligence and capital allocation analysis, we decided to mutually terminate the acquisition,” mentioned Darren Lampert, GrowGeneration’s CEO. “Importantly, our near-term objectives are to build and acquire garden centers in new markets that are growth opportunities for the Company.”
The Company pre-announced 2021 third-quarter income steerage of $114 million to $116 million, bringing year-to-date 2021 income to $330 to $332 million, up 150% from 2020. Same-store gross sales for the third quarter had been up over 15%, versus the identical interval final yr. The Company introduced fourth quarter 2021 income steerage of $110 million to $120 million, incorporating all acquisitions and new shops introduced thus far. Full-year income steerage has been revised to $440 million to $452 million, following the termination of the deliberate acquisition of HGS Hydro. This acquisition was assumed to supply about $20 million of income for 2021. In addition, the Company expects adjusted EBITDA for the complete yr to be within the vary of $47 million to $51 million. Adjusted EBITDA is a non-GAAP metric that represents internet earnings earlier than curiosity, taxes, depreciation, amortization and share based mostly compensation.
The Company additionally introduced its acquisition of All Seasons Gardening, an indoor-outdoor backyard provide heart specializing in hydroponics techniques, lighting, and vitamins. All Seasons Gardening is the most important hydroponics retailer in New Mexico. With the acquisition of All Seasons Gardening, GrowGen’s portfolio of hydroponic backyard facilities now contains 63 shops throughout 13 states.
“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.,” mentioned Darren Lampert, GrowGeneration’s CEO. “Importantly, it represents our entry into New Mexico’s cannabis market, which is projected to become a $1 billion industry by 2026.”
Founded in 2010, All Seasons Gardening carries each indoor and outside backyard provides at its retail location in Albuquerque, New Mexico. As half of the transaction, All Seasons Gardening’ group of 9 workers will be a part of GrowGeneration’s group of over 500 develop professionals.
“All Seasons Gardening has long been proud to serve growers in Albuquerque, New Mexico, with a comprehensive catalog of indoor-outdoor growing supplies. Joining forces with GrowGeneration, the nation’s clear leader in hydroponics retail, allows us to leverage our combined decades of cultivation experience to meet the growing demands of New Mexico’s flourishing legal cannabis industry,” mentioned All Seasons Gardening founder, Long Duong. The All Seasons Gardening acquisition is GrowGeneration’s fourteenth acquired location this yr.
For extra details about GrowGeneration, Corp., or to find its shops, please go to www.growgeneration.com.
About GrowGeneration Corp.:
GrowGeneration owns and operates specialty retail hydroponic and natural gardening shops. Currently, GrowGeneration has 63 shops, which embrace 24 places in California, eight places in Colorado, 7 places in Michigan, 5 places in Maine, 5 places in Oklahoma, four places in Oregon, three places in Washington, 2 places in Nevada, 1 location in Arizona, 1 location in Rhode Island,1 location in Florida, 1 location in Massachusetts and 1 location in New Mexico.
GrowGeneration additionally operates a web-based superstore for cultivators at growgeneration.com and B2B e-commerce platform, agron.io. GrowGeneration carries and sells hundreds of merchandise, together with natural vitamins and soils, superior lighting know-how and state of the artwork hydroponic gear for use indoors and open air by industrial and dwelling growers.
Forward Looking Statements:
This press launch might embrace predictions, estimates or different info that is perhaps thought of forward-looking inside the which means of relevant securities legal guidelines. While these forward-looking statements signify our present judgments, they’re topic to dangers and uncertainties that would trigger precise outcomes to vary materially. You are cautioned to not place undue reliance on these forward-looking statements, which mirror our opinions solely as of the date of this launch. Please remember the fact that we aren’t obligating ourselves to revise or publicly launch the outcomes of any revision to those forward-looking statements in mild of new info or future occasions. When used herein, phrases resembling “look forward,” “believe,” “continue,” “building,” or variations of such phrases and comparable expressions are supposed to establish forward-looking statements. Factors that would trigger precise outcomes to vary materially from these contemplated in any forward-looking statements made by us herein are sometimes mentioned in filings we make with the United States Securities and Exchange Commission, out there at: www.sec.gov, and on our web site, at: www.growgeneration.com.