PETALUMA, Calif.–(BUSINESS WIRE)–PRESS RELEASE–Hydrofarm Holdings Group, Inc. an independent wholesaler and manufacturer of hydroponics equipment and horticultural products, has announced the completion of a $55 million equity financing. This financing included new strategic and institutional investors, as well as follow on participation from Serruya Private Equity (SPE), one of the largest investors in the cannabis industry, Hawthorn Equity Partners, and affiliates of Broadband Capital.
“We are very pleased to complete this equity financing, which provides Hydrofarm with the financial flexibility to continue to grow the business both organically and through acquisitions,” said Peter Wardenburg, chief executive officer of Hydrofarm. “The hydroponics market is rapidly evolving and this capital raise allows us to fund and pursue strategic growth opportunities, including expanding our distribution capabilities, and enhancing our product offerings and service capabilities to satisfy the needs of our growing customer base.”
Hydrofarm has a 40-year operating history as a supplier to the hydroponics and specialty indoor gardening market. The company has one of the largest product offerings in the industry with over 5,000 SKUs from lighting solutions to nutrients to grow mediums, providing growers with a wide range of product choice to ensure their operations are maximizing efficiency, output and quality. Hydrofarm is both a manufacturer and distributor of hydroponic equipment and supplies and sells primarily through 1,500-plus hydroponic and lawn and garden retailers across North America.
“We are very excited about the significant growth opportunity in the broader global cannabis end market. Hydrofarm represents a unique opportunity to help the industry grow by creating a one-stop shop for all market participants to purchase hydroponics equipment and horticultural products, through its network of authorized resellers, for high quality, efficient cultivation,” said Michael Serruya, managing director, SPE.
“We believe the supply chain in this rapidly growing industry represents a large opportunity for an at-scale wholesaler and manufacturer. We are looking forward to working with the company to grow the business and its distribution and service capabilities,” said Michael Rapp, Broadband Capital.
“The strong investor response to this financing is a testament to Hydrofarm’s business strategy and position as one of the dominant players in the industry, as well as demand to participate in the growth of the global cannabis industry though an established, U.S. domiciled and federally-legal company,” said Adam Stern, CEO of SternAegis Ventures and Head of Private Equity Banking of Aegis Capital.
A.G.P./Alliance Global Partners and SternAegis Ventures acted as placement agents and financial advisors on the transaction.