Hydrofarm Holding Group Inc., which is a California based independent wholesaler and the manufacturer of the hydroponics equipment and horticultural products has now secured $55 Million in the funding round of series A.
The financing includes the new strategic and institutional investors as well as follow with some of the participation from the Serruya Private Equity, Broadband capital and Hawthorn Equity Partners.
The company as of now has a plans to use the funds to continue to grow the business in both the organically and via acquisitions as well.
The startup is founded and led by the Peter Wardernburg, CEO, Hydrofarm is a manufacturer and wholesaler of hydroponics eequipment and commercial horticultural products, which includes the high intensity grow lights, growing media and climate control solutions. The company as of now has nine distributions centres across the Northern America.
“We are very pleased to complete this equity financing, which provides Hydrofarm with the financial flexibility to continue to grow the business both organically and through acquisitions,” said Peter Wardenburg, Chief Executive Officer of Hydrofarm. “The hydroponics market is rapidly evolving and this capital raise allows us to fund and pursue strategic growth opportunities, including expanding our distribution capabilities, and enhancing our product offerings and service capabilities to satisfy the needs of our growing customer base.”
It is both distributor and manufacturer a hydroponic equipment and supplies and sells primarily via the 1500+ hydroponic and lawn and garden retailers across the entire Northern America.
“We are very excited about the significant growth opportunity in the broader global cannabis end market. Hydrofarm represents a unique opportunity to help the industry grow by creating a one-stop shop for all market participants to purchase hydroponics equipment and horticultural products, through its network of authorized resellers, for high quality, efficient cultivation,” said Michael Serruya, Managing Director, SPE.
“We believe the supply chain in this rapidly growing industry represents a large opportunity for an at-scale wholesaler and manufacturer. We are looking forward to working with the company to grow the business and its distribution and service capabilities,” said Michael Rapp, Broadband Capital.
“The strong investor response to this financing is a testament to Hydrofarm's business strategy and position as one of the dominant players in the industry, as well as demand to participate in the growth of the global cannabis industry though an established, U.S. domiciled and federally-legal company,” said Adam Stern, CEO of SternAegis Ventures and Head of Private Equity Banking of Aegis Capital.
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