Hydrofarm Holdings Group, a hydroponics and specialty indoor gardening market supplier, filed on Thursday with the SEC to raise up to $100 million in an initial public offering.
Hydrofarm is a leading independent distributor and manufacturer of controlled environment agriculture equipment and supplies, primarily serving the US and Canadian markets with a main focus on the cannabis industry. The company reaches commercial farmers and consumers through a network of over 2,000 wholesale customer accounts, connected primarily through its proprietary eCommerce marketplace. Over 80% of its net sales are generated from specialty hydroponic retailers, but it also distributes products to a diversified range of retailers including garden centers, hardware stores, eCommerce retailers, commercial greenhouse builders, and commercial resellers.
Hydrofarm's products are used to grow, farm and cultivate, among other plants, cannabis. The company believes that it sits at the intersection of two compelling market opportunities: the movement towards or achievement of cannabis legalization across North America, and a revolution in controlled environment agriculture. Since the US presidential election, cannabis stocks have risen.
The Petaluma, CA-based company was founded in 1977 and booked $309 million in sales for the 12 months ended September 30, 2020. It plans to list on the Nasdaq under the symbol HYFM. Hydrofarm Holdings Group filed confidentially on July 17, 2019. J.P. Morgan, Stifel, Deutsche Bank, Truist Securities and William Blair are the joint bookrunners on the deal. No pricing terms were disclosed.
