Ontario-based Serruya Private Equity has led a group of investors in providing a significant equity investment of an undisclosed size to Hydrofarm, a manufacturer and wholesaler of hydroponic equipment and horticultural supplies.
The other firms investing along with Serruya are Hawthorne Equity Partners and Broadband Capital Investments, according to a statement on Monday.
No information was provided about the relative size of the firms’ investments into Hydrofarm, and Serruya representatives did not return messages seeking further detail by press time.
“It is the ideal time to add financial resources and experienced partners to our team, as we see the use of hydroponics at an inflection point where both commercial and private use are poised to accelerate,” Hydrofarm chief executive officer Peter Wardenburg said in the statement. “This partnership also provides us with the financial flexibility to acquire complimentary assets that can grow our platform and accelerate our growth.”
Petaluma, California-based Hydrofarm provides retailers with hydroponic equipment and high-intensity grow lights that support a method of growing that utilizes nutrients but no soil.
Hydrofarm has 16 brands for products ranging from light reflectors, environmental control and air filtration systems, to clay pebbles for use as growing media. The company distributes its products from seven distribution centers located throughout the United States.
In its statement, Hydrofarm highlighted the findings of a report published last year by Research and Markets that projected that the global hydroponics market would grow from $19.95 billion in 2015 to $27.33 billion in 2020.
“The market for indoor growing solutions is a large and rapidly-expanding market being driven by business and consumer demand and regulatory changes that are likely to further expand the market over the next several years,” said Serruya managing director Michael Serruya.
Serruya is a family-managed investment vehicle of the Serruya family, which previously owned frozen yogurt chain Yogen Fruz. The firm has units devoted to acquisitions, lending, investment management and strategic advisory. Its current portfolio’s food-related investments include Jamba Juice, Pinkberry and Blimpie.