GRWG - GrowGen Buys Shelving Company For $9.4 Million
GrowGeneration Corp. (NASDAQ: GRWG) has bought Mobile Media, Inc and MMI Agriculture, an Ellenville, NY-based mobile shelving manufacturing and warehouse facility in a deal valued at $9.4 million. GrowGen said that MMI generated over $14.0 million in revenue in 2021.
MMI occupies two warehouses totaling over 70,000 sq. ft. and will continue to produce products in its manufacturing facility in New York. MMI has been a manufacturer of high-density mobile shelving systems, commonly referred to as “benching,” to a variety of industries including agriculture, retail, commercial, and government, offering a complete turnkey solution, specializing in design, custom manufacturing, shelving systems, and installation across the United States. High-density mobile systems have become a vital part of agriculture grow facilities by increasing overall canopy space both vertically and across the floor by maintaining one moveable aisle in each grow system. MMI has gained significant traction in the agriculture industry by innovating a tiered decking system incorporated within the mobile system, allowing growers to reach numerous vertical tiers while maintaining total system functionality.
“Indoor vertical farming solutions has become a strategic priority for GrowGen, and a key component of our long-term revenue generation plan. Lighting and benching are the first two key components of a grow facility. Combining the adoption of our Ion LED light and cost savings achieved through indoor vertical cultivation using MMI’s vertical benching systems is an important part of GrowGen’s value proposition. Together, GrowGen and MMI increase opportunities for growers by offering not just GrowGen’s robust selection of hydroponic solutions and products, but also a mobile system to utilize these products,” said Michael Salaman , GrowGen’s President, and Co-Founder. “This key strategic acquisition is especially important, as we expand in newly legalizing East Coast states like New York , New Jersey , Pennsylvania , and the New England states Maine , Massachusetts , Connecticut , and Vermont , where indoor vertical growing will be the method of growing. MMI offers a great system and solution that is accompanied by an industry best warranty. Every bit of canopy grow space is critical to any grow facility. Being able to design and deliver a space-saving mobile system, then execute the design by adding in irrigation, drainage, air flow, lighting, and automation solutions, gives us a stronger presence in today’s market.”
GrowGeneration carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and hydroponic equipment to be used indoors and outdoors by commercial and home growers. The acquisition comes on the same days as competitor Scotts Miracle-Gro also announced it was buying a lighting company.
“I started MMI, 35 years ago, with the goal of providing the highest-quality vertical racking systems and I’m fortunate to find a partner like GrowGen, one of the most trusted names in hydroponic and organic gardening,” said Lance Pennington , founder of MMI. “GrowGen’s leadership position in selling products into the indoor vertical farming industry combined with MMI’s indoor vertical racking systems now offers our customers a one stop solution for all their indoor cultivation products makes this the perfect partnership.”