Marijuana hydroponics equipment and supplies company Hydrofarm Holdings Group struck a deal to acquire organic nutrient and grow media company Aurora Innovations for $161 million.
This marks Hydrofarm’s third acquisition this year.
The Fairless, Pennsylvania-based cannabis ancillary said in a news release it will bankroll the deal using a combination of cash and approximately $26 million in stock.
Along with Aurora Innovations, the acquisition includes Aurora International and Gotham Properties, all based in Eugene, Oregon. The companies manufacture and supply organic hydroponic products, including grow media and nutrients.
Hydrofarm said Aurora could generate about $60 million in net sales in 2021.
The acquisition expands Hydrofarm’s growing nutrient and grow media portfolio, including its first organic nutrient and soil brand.
Hydrofarm also gains domestic manufacturing and distribution capabilities on both U.S. coasts along with a peat moss harvesting operation in Canada.
“Aurora’s pioneering R&D lab work in plant nutrition over the past 10-plus years has led to the development of innovative products that improve yields for growers, while simultaneously advancing science in a meaningful way,” Bill Toler, chairman and CEO of Hydrofarm, said in the news release.
Shares of Hydrofarm trade as HYFM on the Nasdaq exchange.