Greengro Technologies Snaps Up Sacramento Retailer Vertical Hydrogarden Just 3 Months After Greengro Alliance
ANAHEIM, CA--(Marketwired - Jun 7, 2013) - Greengro Technologies (PINKSHEETS: GRNH) announced today that it has exercised its option to acquire 100% of Vertical Hydrogarden Inc. (VHI), a leading supplier of green agriculture products including hydroponics, advanced nutrients, and vertical cultivation technology systems design and sales. The announcement comes just 3 months after investing in VHI and leveraging its infrastructure to roll out Greengro's flagship "Flux" product line. Previously, Greengro acquired Vertical Hydrogarden's patented vertical "grow wall" design which it has leveraged into a recently announced joint venture with BP Gardens for organic produce in Southern California.
Earlier this year, Greengro took a bold position in the green agriculture market by defining its fundamental growth strategy with the "three pillars of success" -- a model that has captured the attention of analysts and investors alike in the speculative but explosive growth sector of advanced gardening technologies for food and medicine science.
Vertical Hydrogarden has a strong brand presence in Northern California which is strategically important to Greengro's business model. Moreover, the company's online presence, which boast over 32,000 products, is currently processing orders from around the country, especially in states where the legal and political environment has shifted favorably for sales and support of such systems and expertise. In March, Greengro acquired a 1/3rd interest in the company and used the company's retail and online infrastructure to roll out Greengro's "FLUX" lighting systems to an eager marketplace. After just three months the alliance has exceeded both companies' expectations resulting in Greengro exercising its option six months ahead of schedule.
According to VHI President John Taylor, "Greengro's products have contributed to our 55% year to date growth, and in the last 30 days sales are up 72% over that same period last year, with exceptional profit margins. Both our online and in store traffic is up dramatically and we are very optimistic about being part of Greengro."
Greengro President James Haas said, "We have worked carefully with Vertical Hydrogarden to utilize its infrastructure and measure the effectiveness and acceptance of our own products in their sales model. The combined expertise has resulted in accelerated growth far ahead of our expectations and we are now able to use our branding, marketing, online presence and distribution infrastructure to grow our business and duplicate this success."
As part of the acquisition, John Taylor, president of VHI, and Don Smith, Vice President and CFO, will join the Greengro Advisory Board. They will continue to run VHI operations and take on new responsibilities that increase Greengro's online store and expand sales channels throughout the country.
Taylor added, "We are pleased that our well thought out plan has produced such strong results. Now, under one company we have combined the visibility and vision of a public company with the strong revenue base, expertise and infrastructure of ours. This combination will allow Greengro to lead the green agriculture market."
About Greengro Technologies:
Greengro Technologies is a world class provider of eco-friendly green technologies with specific domain expertise in indoor and outdoor agricultural science systems serving both the consumer and commercial farming markets. Its customers include restaurants, community gardens, small and large scale commercial clients.
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