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PE-backed Hydrofarm expands north of the border

Six months after receiving equity investments led by Serruya Private Equity, the California-based hydroponics wholesaler has acquired two Canadian companies.

Hydrofarm, a hydroponics equipment manufacturer and wholesaler based in California, has expanded its presence beyond the US market with the acquisition of the distribution division of Greenstar Plant Products and Eddi’s Wholesale Garden Supplies, both Canadian companies.

The announcement comes less than six months since Hydrofarm received backing from several investors led by Toronto-based Serruya Private Equity and including Hawthorn Equity Partners – another Canadian firm – and affiliates of Florida-based Broadband Capital Investments.

Hydrofarm has not disclosed the size of the equity investments nor the financial details regarding the two acquisitions. A spokesperson for the company had not responded to a request for comment by press time.

“We are very pleased to partner with Greenstar and Eddi’s, both of which have a long history of providing a broad range of products with the highest level of customer service throughout Canada,” Hydrofarm’s chief executive Peter Wardenburg said.

Greenstar will remain an independent manufacturer of horticultural products, which include Grotek, SuperGreen and EarthSafe, while Hydrofarm will serve as the primary distributor of these products in North America, according to the statement.

“It is the ideal time to partner with both companies, bringing Hydrofarm’s exciting product portfolio to the high-growth Canadian market, while enhancing our growth opportunity in the US,” Wardenburg added.

Hydrofarm manufactures a range of hydroponics equipment and horticultural products, including high-intensity grow lights, climate control solutions and growing media. The acquisitions of Greenstar and Eddi’s have allowed Hydrofarm to increase the number of its distribution centers from seven to 10.