Hydrofarm Holdings Group 

  Private Equity  

  

  Athena  

WARNING

The law normally requires people who offer financial products to give information to investors before they invest. This information is designed to help investors make an informed decision.

If you are an accredited investor under the definition of that term in Rule 501(a) of Regulation D of the US Securities Act of 1933, the usual rules do not apply to offers of financial products made to you. As a result, you may not receive a complete and balanced set of information.

You will also have fewer other legal protections for these investments. Ask questions, read all documents carefully, and seek independent financial advice before committing yourself.


Overview

We are pleased to present this Private Placement offering opportunity to invest in Hydrofarm Holdings Group (“Hydrofarm”).


Hydroponics is the indoor farming of plants without the use of soil which allows enables year-round growing regardless of climate. Hydrofarm is the largest independent provider of hydroponics products in the U.S. and Canada with $260 million in sales in 2017. 


Hydrofarm is the longest standing specialty farm and garden hydroponics products wholesaler in North America with a 40 year history. It currently sells to over 1,700 retailers and is the #2 hydroponic distributor in the US and #1 in Canada having achieved 15% sales growth for over a decade.


There is a significant growth opportunity for Hydrofarm in the broader global cannabis end market. Today 60% of Americans live in a state where cannabis is legal in some form and almost 30% of the population lives in states or jurisdictions where it is fully legalised for recreational use. The U.S. cannabis market is projected to reach approximately $36.7 billion by 2025, up from approximately $13.2 billion in 2018.


Hydroponics is especially popular with growers of cannabis. Hydrofarm represents a unique opportunity to help the industry grow by creating a one-stop shop for all market participants to purchase hydroponics equipment and horticultural products, through its network of authorised resellers, many who serve primarily cannabis growers.


In June 2018, Scotts Miracle-Gro Company (NYSE: SMG) (“SMG”) finalised its acquisition of Sunlight Supply, a leading hydroponic product distributor, for $450 million. Hydrofarm believes that this substantial investment in hydroponics distribution is a testament to the long-term growth value of the sector. The cannabis cultivation industry is experiencing rapid growth driven by the state-level legalisation efforts in the U.S. and the recent legalisation in Canada. Scotts Miracle-Gro Company reported that Sunlight’s hydroponics business was up 40% in its most recent quarter and up 15% year-to-date.


New management is in place to lead the next phase of growth which will be supported both by robust core

business growth and accretive M&A. Bill Toler (Chairman & CEO) previously served as CEO of Hostess Brands under Apollo’s ownership, taking it public in 2016, and as CEO of AdvancePierre under Oaktree Capital’s ownership prior to it’s acquisition by Tyson Foods.


Terry Fitch (President) combines 20+ years of experience at Coca-Cola and McKinsey with extensive

operational knowledge of hydroponic cultivation facilities.


Hydrofarm has a clear projectable path to +25% - 35% topline growth.


The closing date for the Offering will be 30 September 2019. This offer is open only to investors that are “accredited investors” (as defined in Rule 501(a) of Regulation D promulgated under the US Securities Act of 1933.


Syndex is proud to facilitate this opportunity to eligible investors. Investors participating in this Offer through Syndex will, in addition to any obligations set out in the PM, pay a one-off Platform Fee as set out in the Athena Fee Agreement (AFM).


Shares subject to availability. Pricing may vary subject to market conditions.


TO REGISTER INTEREST


Click on the tab to register interest you will be contacted by an advisor to the company and be provided access to the Private Placement and the Athena Fee Agreements.


Issue Type:
Private Equity
Sector:
Agri-Tech
isEOI: true

Investment Details

Investment Type: Wholesale

Wholesale Investment Type:

Transaction Size:USD 50,000,000.00

Committed Capital: 

Pre-money valuation: 

Minimum Capital Raise: 

Share Price:USD 0.00

Unit Price:USD 1.00

Minimum Investment Size:USD 50,000.00

Document Name Description Date Uploaded
Zoom: 0

You do not have any investments to report on.

No trade history available for this issue.

Secondary Market - Hydrofarm Holdings Group Wholesale

No secondary market listings for this issue availble at this time. Check the Exchange for more listings.