29th September 2022
Regenerative agriculture AgriHub
Corporate Stock Market

urban-gro’s Acquisition of Emerald CM Enables a Fully Integrated Solution

urban-gro interview with Bradley Nattrass

Throughout the years, urban-gro, Inc. has grown into becoming a leading indoor CEA solutions provider for both the cannabis industry and leafy greens. From Denver, Colorado, the Company is now present in many countries and is looking to further expand its business into other regions.

“The acquisitions that we’ve made have enabled us to deliver a fully integrated, tailored service to our clients and offer purpose-built solutions. Over the past 12 months, urban-gro has acquired 2WR+ Partners and MJ12 Design studio, a full design services firm for the commercial and cannabis industries and recently, we closed the acquisition  of Emerald CM, a 37-year-old Colorado-based construction management firm providing comprehensive design build construction and supervisory services, from initial design through final build-out.” 

urban-gro, Inc. (Nasdaq: UGRO), a fully integrated architectural, engineering, construction management, and cultivation systems integration company focused on delivering complete design-build solutions to the indoor CEA and Commercial sectors, announced on the 14th of March, that it has signed a definitive agreement to acquire Emerald Construction Management Inc., a 37-year old Colorado-based construction management firm providing comprehensive construction and supervisory services, from initial design through final build-out. Emerald C.M. expects 2021 revenues of $26.5 million and adjusted EBITDA of $1.2 million. The total purchase price for the transaction, inclusive of a maximum $2.0 million contingent earnout, is $7.0 million. urban-gro will fund the transaction with a combination of $2.5 million in cash and up to $4.5 million in equity. The transaction was formally closed on May 2, 2022.

Commenting on the deal, Bradley Nattrass noted, “Emerald Construction is the missing piece to our offerings as they enable us to deliver a full suite of services and design-build capabilities to our clients thanks to their experience, their employees and that adds another string to our bow.” He continues, “Not only does it enhance the customer experience but it also differentiates us from the market as we are, to date, the only Controlled Environment Agriculture Firm to offer such a range of services to our clients, no matter if they produce cannabis or leafy greens.”

“The network that they have extends overseas as they have contractors in Europe where we plan on furthering our development with the opening of an office in Amsterdam and the deal that we signed in Q4 2022 with Urban Health Farms, where we will design and build up to 20 mid-sized (20 to 25,000 square foot) food vertical farms” Bradley Nattrass adds, “Though we leverage Emerald CM’s contractors’ expertise in the European market, we are hiring our own team and are seeking potential companies to acquire as we start expanding to the EMEA region with the first European deals. We believe that acquisitions are an effective way to enter a market and instantly access years of experience, all these acquisitions are centered around our teams’ experience and skills.”

“These acquisitions also enable us to increase the value of urban-gro vis-à-vis in the stock market as the acquirees are healthy and create synergies that will only extend our development and presence in the CEA market.” 

Want to read more? Have a look at our latest edition of Vertical Farming Review® to learn more!

1 Comment

  • […] prior year period, representing an increase of $3.5 million, or 27%. This increase was driven by the accretive acquisition of Emerald Construction Management with a $2.9 million increase in construction design-build revenue for the two months in the quarter […]

Leave a Reply

Your email address will not be published.

Cultivatd
X
%d bloggers like this: