Key Takeaways
- Vertical farming and greenhouse technology companies accounted for the majority of indoor farming M&A activity in 2025.
- Consolidation accelerated following a wave of bankruptcies, with stronger players acquiring distressed assets.
- Automation and CEA infrastructure companies ranked second in M&A activity, driven by technology absorption and capability building.
- Greenhouse solution providers led M&A by sector, followed by vertical farming and substrates.
- Overall deal activity reflected a shift toward rationalization in a capital-constrained market.
Indoor Farming M&A Reaches New Heights In 2025 Following a Wave of Bankruptcies
Indoor farming M&A activity in 2025 was closely linked to a broader restructuring phase across the controlled-environment agriculture (CEA) sector. Following multiple bankruptcies among vertical farming operators and technology providers, consolidation intensified as financially stronger companies moved to recover assets, preserve technology, and stabilize operations.
Vertical farming and greenhouse technology together represented the largest share of mergers and acquisitions during the year. Several transactions involved distressed assets, including acquisitions related to Freight Farms, NaturalShrimp Farms, and CE-Line. In parallel, strategic mergers such as the combination of 80 Acres Farms and Soli Organic aimed to achieve scale efficiencies and reinforce market positioning rather than pursue aggressive expansion.
Greenhouse Solution Providers Lead by Sector
By sector, greenhouse solution providers recorded the highest number of M&A transactions in 2025, with five deals tracked during the year. Vertical farming followed with three transactions, while substrate companies accounted for two deals. Container farming, robotics, and grower-level acquisitions each represented one transaction.
This distribution reflects buyer interest in infrastructure, systems integration, and proven operating technologies. Greenhouse technology assets—often modular, service-driven, and less capital-intensive than full vertical farm operations—were particularly attractive in a market focused on operational resilience.
Automation and Infrastructure as Strategic Targets
CEA automation and infrastructure companies ranked second overall in M&A activity. These acquisitions were largely motivated by the desire to strengthen core capabilities through majority investments and technology absorption rather than revenue growth alone.
Notable examples include EBZ Group’s investment in Organifarms, PB tec’s acquisition of CE-Line assets, and Nazca Capital’s involvement with SanSan. These deals highlight how buyers are prioritizing control over automation platforms, climate systems, and operational know-how that can be deployed across multiple projects.
A Shift Toward Capability Consolidation
Overall, indoor farming M&A in 2025 reflects a sector transitioning from expansion to rationalization. Rather than building new capacity, companies increasingly used acquisitions to secure technology, recover value from failed operators, and reinforce competitive positioning in a capital-tight environment.
Access the Full Indoor Farming M&A Dataset
This article is based on selected insights from the Indoor Farming Trends in 2025 report. The full report includes detailed M&A tables, sector breakdowns, and links between bankruptcies, acquisitions, and consolidation trends.
👉 Download the full report here: https://network.igrownews.com/forms/ac0f9cc6
