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GrowGeneration Buys Viagrow to Enhance E-commerce & Retail Presence

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Key Takeaways

  • GRWG acquires Viagrow to grow its proprietary brand strategy and expand its customer base.
  • Viagrow adds $3M in revenues, and boosts GRWG's e-commerce and mass retail distribution.
  • The deal is expected to raise GRWG's gross margin in 2025 and support more than 30% margin goals.

GrowGeneration Corp. (GRWG - Free Report) announced that it acquired a domestic supplier of gardening and hydroponic equipment, Viagrow. This deal aligns with GRWG’s strategy of driving growth through higher-margin proprietary brands and broadening customer base.

Details of GrowGeneration’s Viagrow Deal

Viagrow was founded in 1998 in Athens, GA. It provides a selection of gardening supplies and currently has $3 million in annual revenues. Viagrow's products are available at top retailers and online.

GrowGeneration will gain from Viagrow's strong presence in mass retail and e-commerce, as it will enhance GRWG’s ability to reach more customers and drive sales. The acquisition will further strengthen the company's omni-channel capabilities through improved e-commerce performance.

The deal also expands GrowGeneration’s capacity to deliver professional-grade cultivation solutions to home gardeners and small-scale growers. This will allow the company to tap into a rapidly growing consumer segment.

The acquisition is expected to be accretive to GrowGeneration’s gross margin in 2025. This will aid the company’s goal of achieving more than 30% margins through private-label expansion. 

GRWG will get a foundation for expanding its proprietary brands into mass retail through national partnerships.

GrowGeneration will pay through a combination of cash and stock.

GRWG’s Stock Price Performance

In the past year, the company’s shares have lost 47.8% compared with the industry’s 12% fall.

 

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GrowGeneration’s Zacks Rank & Stocks to Consider

GRWG currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks from the basic materials space are SSR Mining Inc. (SSRM - Free Report) , Alamos Gold Inc. (AGI - Free Report) and Hawkins, Inc. (HWKN - Free Report) . SSR Mining currently sports a Zacks Rank #1 (Strong Buy), and Alamos Gold and Hawkins carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SSR Mining has an average trailing four-quarter earnings surprise of 58.8%. The Zacks Consensus Estimate for SSRM’s 2025 earnings is pegged at $1.14 per share, implying a year-over-year upsurge of 307%. SSR Mining has skyrocketed 147.9% last year.

Alamos Gold has an average trailing four-quarter earnings surprise of 1.4%. The Zacks Consensus Estimate for AGI’s 2025 earnings is pegged at $1.24 per share, indicating year-over-year growth of 55%. Alamos Gold shares have surged 66% last year.

Hawkins has an average trailing four-quarter earnings surprise of 8.2%. The Zacks Consensus Estimate for HWKN’s 2025 earnings is pegged at $4.37 per share, indicating year-over-year growth of 8.4%. Hawkins shares have jumped 55.5% last year.

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