urban - gro has agreed to acquire MJ12 Design Studio and parent company , 2WR+ Partners . urban - gro will fund the dealing of $ 9.1 million through a compounding of cash and UGRO plebeian stock , admit contingent consideration of up to $ 2 million based on accomplishment of sure performance metrics . The caller expects the transaction to be accretive to earnings in its current fiscal year .
Acquisition of the laurels - deliver the goods , full - avail computer architecture firm greatly expands urban - gro ’s service offer up by create the industry ’s first amply integrate architecture , engineering science , and cultivation systems consolidation company serve the marijuana and nutrient - focused CEA sector .
Bradley Nattrass , Chairman and CEO of urban - gro comment , “ this accretive and synergistic acquisition positions urban - gro for a strong future tense in the global CEA market . It will have a significant positive encroachment on drive incremental engineering science and intention service , as well as equipment system revenues . The troupe can now directly come up to more challenges confront by cultivators when expanding existing or design new CEA facility . Our enhanced integrated menu of servicing offerings affords guest the wash room of work with one society that possesses the expertise to fully interpret the plant , their business , and the technical design aspects necessary to impart a high - performance cultivation facility to sprightliness . The inclusion of architecture allows us to now propose our clients complete design capabilities for their cultivation , processing , origin , and retail facilities . Moreover , the move brings the caller one footfall closer to our goal of bear double-dyed , stop - to - end turn - central indoor CEA facilities . ”
Upon close up , urban - gro , Inc. will learn MJ12 Design Studios , along with its parent company 2WR+ Partners , a multi - state architectural and interior design firm . The combined 23 - person house , include Senior Principal and Partner Sam Andras , AIA , will join the urban - gro squad . Mr. Andras will serve on the executive leadership team , heading urban - gro ’s computer architecture , engine room , and design offering , which collectively now features experience in over 400 CEA facilities .
“ With its focus on growth in the European market and strong capital position , urban - gro provides us with an opportunity to put to death on a global scale , which has been a long - go for vision for me and my squad , ” Andras said . “ On behalf of myself , my partners , and all of our employees , we are very aroused to be a part of the urban - gro team and propel the industry forward . Joining this in high spirits - growth publicly traded company allows us to collectively bring elite group , works - concentrate design solutions to even more clients , in bit , ease the saving of flora - based medicines and topically produced food crops across the Earth . ”
Nattrass agree stating , “ the speedily grow global CEA sector for cannabis and food for thought lay out a tremendous opportunity for our firms to commingle our core competency , applying our experience and expertise to partner with client in achieving their goals . The acquisition presents an chance for urban - gro to establish customer kinship much earlier in the design process , create a cascading effect of downstream potential to provide the company ’s exist service and equipment solution on MJ12 ’s current open projects and with newfangled client . ”
“ The gain of 2WR and MJ12 ’s high - gross profit margin occupation offering serve to further strengthen urban - gro ’s fiscal public presentation , ” said Dick Akright , Chief Financial Officer of urban - gro . “ I am thrilled that this acquisition not only run along our strategic attainment path , but it acts as a natural patterned advance for urban - gro to flourish our reach . The addition of MJ12 ’s existing projects fortify our portfolio and better equips us to conform to the need of our existing and future client . ”
While urban - gro will learn MJ12 for coordinated computer architecture , technology , and design services in the CEA marketplace , the company will continue to exploit with other architectural partners at our client ’ request . likewise , 2WR will keep to crop with and develop new relationships with other engineering and design partners , as well as allow for serving in non - cultivation market place including education , healthcare , commercial , civil , multi - family , and hospitality .
For more info : urban - gro720 - 390 - 3880[email protected]urban - gro.com
