GrowGeneration (GRWG) made its second acquisition in as many days as the marijuana growing-supplies retailer snapped up a hydroponic superstore operator Tuesday. GRWG stock and marijuana stocks fell.
GrowGen agreed to buy Santa Ana, Calif.-based 55 Hydroponics on Tuesday. The acquisition expands GrowGen’s retail footprint in California to 18, with nine locations in the key Southern California market, and its overall U.S. locations to 51. Terms of the deal were not disclosed.
“As the dominant hydroponics retailer in Orange County, 55 Hydroponics boasts a devoted cus tomer base, unmatched cultivation expertise, and a vast inventory of top-notch supplies, all of which will help GrowGen better serve Southern California’s growers,” GrowGen CEO Darren Lampert said in a news release.
The 55 Hydroponics acquisition is GrowGen’s sixth this year.
On Monday, GrowGen announced that it acquired Char Coir, which produces popular hydroponic growing materials made from coconut fiber, to add more than $15 million to its sales this year.
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GRWG Stock, Marijuana Stocks
Shares fell 2.9% to close at 51.78 on the stock market today. But GRWG stock found support at its key 50-day line, which it retook on Friday after falling from an all-time high of 67.75 in February, according to MarketSmith chart analysis. GrowGen is the top-ranked stock in IBD’s Retail-Specialty Group.
Marijuana stocks were largely down Tuesday. Tilray (TRLY) sank 11.5%, and Canopy Growth (CGC) fell 5%. Meanwhile, Cronos Group (CRON) lost 4.5%, and Aurora Cannabis (ACB) dropped 6.3%.
Marijuana stocks have done well the past year as legalization spreads to more states and more people began growing cannabis at home during the Covid-19 pandemic. But they have come down sharply from highs reached last month while earnings remain elusive.
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