Gotham Greens has made its first acquisition and secured new funding to develop its US community of high-tech, hydroponic greenhouses.
The New York-headquartered enterprise, which grows leafy greens and herbs in a managed indoor setting, has received US$310m in a Sequence E spherical led by a sustainability fund run by the Financial institution of Montreal (BMO) in Canada.
Concurrently, Gotham Greens has bagged its first acquisition because the firm’s founding in 2009, shopping for FresH2O Growers in Virginia.
Gotham Greens stated the financing is its largest up to now, with the BMO Impression Funding Fund joined by funds managed by Ares Administration in Los Angeles, each new buyers by debt and fairness. Since its inception, the corporate has now secured $440m, together with $87m by way of a Sequence D in 2020.
By 2023, Gotham Greens stated it’ll function 13 greenhouses throughout the US, totalling round 1.8m sq. ft. It runs farms in New York, Rhode Island, Maryland, Illinois, Colorado and California.
Others are beneath building in Seagoville, Texas; Monroe, Georgia; and Windsor in Colorado. The money may even be used to fund the enlargement of current greenhouses in Chicago and in Windfall, Rhode Island.
Viraj Puri, the co-founder and CEO of Gotham Greens, stated: “With rising local weather and provide chain-related points dealing with our meals system, it’s extra essential than ever to carry modern farming options that develop high-quality produce whereas utilizing fewer treasured pure sources. Gotham Greens is rising quick, and we look ahead to bringing our model to new markets within the coming months.”
Additional acquisitions are additionally on the playing cards with the brand new financing in hand. Gotham Greens, which additionally produces salad dressings, dips and cooking sauces, stated it “not too long ago” snapped up FresH2O Growers in Stevensburg. FresH2O operates 540,000 square-foot of hydroponic greenhouses rising kinds of lettuce.
FresH2O proprietor Joe Van Wingerden added: “We’re proud to go the torch of the greenhouse facility and enterprise to Gotham Greens, our trusted pals and business companions. Gotham Greens and FresH2O shared a need to advance greenhouse agriculture and to carry extra recent, native and sustainably grown produce to shoppers throughout the nation.”
Colorado-based funding agency Manna Tree Companions and The Silverman Group, a private-equity home in New Jersey, have been returning buyers within the Sequence E. They have been joined by new contributors Commonfund, RockCreek and Kimco Realty.
Gotham Greens provides US retailers Entire Meals Market, Kroger, Albertsons, Sprouts Farmers Market, The Contemporary Market, AmazonFresh and FreshDirect. It additionally serves the foodservice channel.
Marc Khouzami, a managing director of the BMO Impression Funding Fund, stated: “BMO IIF is happy to be partnering with Gotham Greens on the following stage of the corporate’s progress, as they proceed to develop their market share and solidify their place as a number one indoor-farming operator.”