GrowGeneration Corp. announced today that it has acquired Southern California-based Canopy Crop Management and its complete portfolio of products. GrowGeneration Corp. is the largest chain of specialty hydroponic and organic garden centers in the U.S.
GrowGen (GRWG) was named the best cannabis stock of 2020 by Bloomberg News and has just completed a $172.5 million capital raise to facilitate its continued growth.
Canopy Crop Management is recognized as the industry’s leading silicic acid company, and its Power SI brand will continue to be sold at all GrowGen’s 39 locations and to all hydroponic retail stores.
Michael Salaman, GrowGen’s President and Co-Founder, said, “We are proud to bring Canopy Crop Management and its founder Rex Gill under our umbrella. Rex brings his unique technologies and proprietary products to GrowGen and will be instrumental in leading private label product development within the nutrient and additive space.”
This purchase is GrowGen’s third acquisition in the last two months and follows last week’s announcement that it had bought Grassroots Hydroponics, a three-store chain of hydroponic garden centers. GrowGen also bought The GrowBiz in November. (See GRWG stock analysis on TipRanks)
Alliance Global Partners analyst Aaron Grey reiterated his Buy rating on the stock yesterday and raised his price target from $30 to $45 (7% upside potential). Grey believes that GrowGen will continue to build momentum into 2021 and is one of the few stocks traded on a major exchange that provides exposure to the U.S. cannabis sector.
GrowGen’s share price has increased over 900% so far this year.
Overall, consensus among analysts is a Strong Buy based on 6 Buy recommendations. The average price target of $37.83 implies downside potential of around 10% over the next 12 months.
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