Hydrofarm Holdings Group, Inc., a Fairless Hills distributor/manufacturer of hydroponics equipment, has purchased a Canadian nutrient company. Hydrofarm intends for the $83 million acquisition of Greenstar Plant Products, Inc., to help cultivate its agribusiness brand.
Greenstar is one of several plant nutrient manufacturers Hydrofarm is eyeing or has bought. The acquisition mode is part of an overall plan to continue to blossom in the controlled environment agriculture (CEA) market.
“The addition of Greenstar to the Hydrofarm family feels like a natural next step in our efforts to broaden our company’s footprint and strengthen our product portfolio,” said Bill Toler, Hydrofarm Chairman/CEO.
“We’re excited about the many opportunities becoming a part of Hydrofarm will create and to play a role in the company’s growth,” said Michael Nemirow, CEO, Greenstar Plant Products, Inc.
“Over the years, we’ve established a great working relationship based on a passion for the future of [CEA] and the horticultural market overall,” Nemirow concluded.
Hydrofarm plans for Greenstar to generate approximately $26 million U.S. dollars in net sales in 2021.
Expectations within Hydrofarm are for the acquisition to enhance its adjusted EBITDA margin for the 2021 fiscal year.
