Greengro Technologies Inc. [stockquote symbol=GRNH], a provider of eco-friendly green technologies specializing in indoor and outdoor agricultural systems, recently announced a multi-phased partnership and acquisition agreement with Tricor Mechanical Inc., a provider of HVAC systems and construction services. Under the terms of the agreement, Greengro will own 51% of Tricor Mechanical by the end of 2014 and will acquire the remaining 49% within two years.
“This is a great opportunity for both companies,” said Greengro Technologies’ James Haas. “Tricor has years of experience in the construction industry and was looking for a company like Greengro to expand into new emerging markets. As Greengro’s turnkey systems business for green agriculture and legal cannabis expands, especially at the state and federal level, having the reputation and construction capabilities that Tricor offers will make us the obvious vendor choice.”
The announcement comes within weeks of Greengro’s planned expansion into Colorado, and the introduction of its new line of advanced greenhouses. Tricor’s project load from federal and state government funded opportunities are starting to make up a large proportion of the backlog, which could also add to Greengro’s revenue base over the long-term. The cannabis business also has extensive need for HVAC systems and complex construction services.
“Tricor has begun to aggressively pursue alignment/JV partners to accentuate current capabilities and to copiously learn new fundamentals to increase the likelihood of successful projects while maintaining and forging new alliances,” said Tricor CEO Arnie Robles. “A great example would include the new $29,559,000 project at the Los Angeles Federal Courthouse where Tricor teamed up with one of California’s largest mechanical contractors to satisfy the complex requirements.”
Shares of Greengro Technologies Inc. fell just over 4% in mid-day trading on Tuesday, August 12, 2014 following the news announcement.
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