urban-gro upgrades CEA construction capabilities via acquisition

The acquisition of Emerald Construction Management (Colorado, USA) further strengthens urban-gro's strategy to supply the global indoor CEA market with turn-key design-built facilities.

Photo courtesy of urban-gro

urban-gro (Lafeyette, Colorado) announced that it has signed an agreement to acquire Emerald Construction Management Inc. (“Emerald C.M.”), a Colorado-based construction management firm.

Bradley Nattrass, Chairman and CEO of urban-gro, commented, “The Emerald C.M. acquisition represents an important step in our strategy to supply the global indoor CEA market with turn-key design-built facilities. The market for mid-sized turnkey cultivation facilities and vertical farms is underserved, proving urban-gro a unique opportunity to bring the expertise and experience that is needed to deliver high-performance facilities.  This acquisition enables us to get our clients to market more quickly while maintaining elite service levels.” 

Christopher Cullens, CEO of Emerald C.M., concluded, “This union will provide immense value to all our CEA and non-CEA clients as they will be able to take advantage of the expertise, scale, and the complete suite of professional services that urban-gro offers. We’ve developed a strong partnership with urban-gro, and I couldn’t be more excited for both our clients and my team to experience what the combined company will offer.”

Financial details

  • 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 is expected to close within 60 days, pending successful completion of due diligence, according to urban-gro. 

Head here for the full release from urban-gro.

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