Agriculture equipment manufacturer Hydrofarm East of Fairless Hills announced its purchase of Field 16, a maker of plant nutrients. Pat Maio reported the $78 million transaction in the LA Business Journal.
Field 16 manufactures and distributes Heavy 16, a liquid that boosts the yield and quality of crops. The nutrients it supplies are a staple in most commercial cannabis growing operations.
After the transaction is completed, Heavy 16 Chief Executive Aaron Berkowitz will join Hydrofarm’s senior management. In addition, Heavy 16 Founder and Chief Agronomist Bryce Patterson will continue to work alongside Berkowitz. They will focus on research and development, customer experience and integration efforts.
“A key component of our growth strategy is to bring dynamic brands like Heavy 16 under the Hydrofarm umbrella. [We will] continue to solidify our position as the acquirer of choice in this highly fragmented and fast-growing industry,” said Bill Toler, Chairman/CEO of Hydrofarm.
A combination of Hydrofarm East cash, an existing line of credit and the issuance of stock funds the purchase.
Hydrofarm East’s product line includes inventories of such items as high intensity grow lights, climate control solutions and growing media.
Forecasters project 2021 sales of Heavy 16 at $23 million.
More on this acquisition is at the LA Business Journal.