GrowGeneration, a chain of specialty hydroponic and organic garden centers, today announced its acquisition of Agron.io, a leading wholesale agriculture platform that allows commercial growers to manage their purchasing and logistics in one platform.
Agron.io offers commercial pricing, real-time inventory, and a product catalogs in the industry, with over 10,000 products in over 60 categories, including greenhouses, vertical benching, controlled environmental systems, HVAC, and industrial equipment. The platform manages real-time product updates, tier-pricing changes, case quantities, pallet quantities, profit margin projections, hazmat fees, ETL/UL listings and state chemical regulations, as well as guarantees the latest shipping quotes using API generated pallet and box shipping rates. The Company expects Agron will contribute $20 million in revenue for GrowGen this year.
"As additional legal cannabis markets continue to open up across the country, we are expanding and enhancing our commercial services, from facility design and consulting to volume product pricing, to deliver best-in-class support for large growers," said Darren Lampert, GrowGen's CEO. "The Agron.io platform is a strategic and exciting addition to our portfolio and comes with a highly skilled team of customer service experts trained to help growers navigate the complexities of planning, growing and sustaining a commercial agriculture facility."
Jeff Gordon, Co-Founder and CTO stated, "Agron.io was created to give commercial customers real-time data to manage their purchasing and logistics. Connecting our technology with the Grow Generation distribution network, and a world class team of commercial experts, we now have a platform that is a complete game changer for our evolving industry."
With the addition of Agron.io Powered by GrowGen for commercial accounts, GrowGen will continue to operate its e-commerce platform GrowGeneration.com for retail and craft cannabis and organic produce growers. The GrowGeneration.com site features online ordering of over 10,000 products, ranging from organic nutrients and soils to advanced lighting technology; enhanced order tracking; buy online pickup in store (BOPIS) capability; a virtual garden center with 16 product departments; and a GrowPro channel featuring educational and how-to content from grow specialists.
The Agron.io acquisition is GrowGen's eighth this year and follows yet another quarter of record earnings. In January, the Company pre-announced fourth-quarter revenues of $61.5 million, bringing full-year 2020 revenue to $192 million, up 140% from 2019. Same-store sales increased 63% for full-year 2020, compared to the previous year. The Company also raised its 2021 revenue guidance to $335 million-$350 million and raised its 2021 adjusted EBITDA guidance to $38 million-$40 million. GrowGen plans to have 55 garden center locations by the end of 2021.