GrowGeneration expands with Viagrow acquisition

DENVER - GrowGeneration Corp. (NASDAQ: GRWG), a leading specialty retailer of hydroponic and organic gardening products, has acquired Viagrow, a domestic supplier known for eco-friendly gardening supplies. The cash and stock transaction brings Viagrow, a company with an annual revenue of $3 million, into the GrowGen family, marking a strategic expansion into the home gardening and big box retail sectors. According to InvestingPro data, GrowGen currently maintains a market capitalization of $70.21 million and holds more cash than debt on its balance sheet, with a healthy current ratio of 4.38.

Founded in 1998 and based in Athens, Georgia, Viagrow has established a distribution network across major retailers such as Amazon, The Home Depot, Lowe’s, Tractor Supply Co., and Walmart. This acquisition is expected to enhance GrowGen’s gross margins in FY2025 and aligns with its aim of achieving 30%+ margins through the expansion of private-label offerings. The company’s current gross profit margin stands at 23.84%, according to recent financial data, suggesting room for improvement. InvestingPro analysis indicates the stock is currently undervalued, with 12 additional exclusive insights available to subscribers.

GrowGen’s CEO, Darren Lampert, highlighted the significance of the acquisition, stating that it represents a transformational step for the company as it broadens its customer base and increases its presence in multiple sales channels. Viagrow’s selection of professional-grade equipment and organic nutrients complements GrowGen’s product portfolio and supports its strategy to provide high-quality cultivation solutions to a diverse range of growers. This strategic move comes as the company faces revenue headwinds, with InvestingPro data showing an 18.56% decline in revenue over the last twelve months.

The deal is anticipated to boost GrowGen’s performance on Amazon and other e-commerce platforms, further advancing the company’s omni-channel strategy. Additionally, it provides a scalable platform for national retail partnerships, which is expected to accelerate the penetration of GrowGen’s proprietary brands into mass retail.

GrowGeneration, recognized as the nation’s largest specialty hydroponic and organic gardening retailer, offers a wide array of products, including its own proprietary brands. The company also operates an online superstore and maintains a wholesale business for resellers, as well as a benching, racking, and storage solutions business.

This press release contains forward-looking statements that involve risks and uncertainties. While these statements reflect current expectations, there is no guarantee that the anticipated results will materialize. The company advises against placing undue reliance on these forward-looking statements, which are valid only as of the date of the release. Changes in circumstances or the occurrence of unanticipated events could cause actual outcomes to differ from those expressed in or implied by the forward-looking statements.

This article is based on a press release statement and aims to present the key facts surrounding GrowGeneration’s acquisition of Viagrow, without endorsement or promotional intent.

In other recent news, GrowGeneration Corp reported a net loss for the first quarter of 2025, with a significant drop in revenue compared to the previous year. The company’s net revenue decreased to $35.7 million from $47.9 million in Q1 2024, while reporting a net loss of $9.4 million or $0.16 per share. Despite the revenue decline, GrowGeneration improved its gross margin to 27.2%, up 140 basis points year-over-year, indicating operational efficiency gains. The company has withdrawn its full-year 2025 guidance due to macroeconomic uncertainties but expects Q2 2025 revenue to exceed $40 million. Proprietary brand sales increased, accounting for 32% of total revenue, up from 22.6% the previous year. GrowGeneration’s focus remains on improving margins, cost control, and exploring potential acquisitions to enhance its product and distribution capabilities. The company continues to emphasize its strategic shift towards proprietary brand penetration and servicing commercial customers.

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