GrowGeneration (GRWG) on Monday said it bought a purchasing platform for commercial cannabis growers, marking its eighth acquisition this year. GRWG stock rose slightly.
The U.S. cannabis-focused retailer said Agron.io has technology that helps growers track inventory and manage operations. Additionally, Agron’s platform also offers pricing and shipping data and a large product catalog. It sells a variety of industrial equipment, like lighting and hydroponic supplies via the catalog.
Terms of the deal weren’t disclosed. However, GrowGeneration expects Agron, which began operating in 2016 and is based in Denver, to add $20 million in sales this year.
Meanwhile, the expansion into purchasing technology reflects GrowGeneration’s effort to become what it described as a “one-stop destination.” It serves commercial customers, which include large U.S. multistate cannabis growers.
Seventy percent of GrowGeneration’s revenue comes from multistate or bigger single-state operators, which often rely on such technology. GrowGeneration runs 52 stores that sell products like nutrients and soils. It doesn’t sell cannabis directly.
The acquisition on Monday also reflects what could be an accelerated pace of consolidation for the U.S. cannabis industry. That comes amid anticipation for wider legal reform on state and federal levels.
GRWG stock and other marijuana stocks rallied after November’s presidential election and two Senate runoff elections in Georgia that took place in January.
“As additional legal cannabis markets continue to open up across the country, we are expanding and enhancing our commercial services,” CEO Darren Lampert said in a news statement. The changes range “from facility design and consulting to volume product pricing, to deliver best-in-class support for large growers.”
GRWG Stock, Marijuana Stocks
GrowGeneration reports fourth-quarter earnings on Wednesday. In January, management said it expected fourth-quarter sales of $61.5 million. It also hiked its 2021 sales outlook to $335 million-$350 million.
Last week, the company said it bought a hydroponics and fertilizer store in Santa Ana, Calif. At that time, it also said it acquired a similar store in Agawam, Mass. The latter acquisition represented GrowGeneration’s entry into Massachusetts, its 12th state with retail locations.
And GrowGeneration last week also acquired Char Coir, a producer of hydroponic growing materials.
YOU MAY ALSO LIKE:
This post was originally published on *this site*