Grow tech giant Agrify flexes into extraction, processing with $50 million acquisitions

Cultivation tech specialist Agrify has acquired two hemp and marijuana equipment and services brands for at least $50 million in cash and stock.

Agrify announced Monday that it bought two companies that recently merged to create Sinclair Scientific:

  • Precision Extraction Solutions, which specializes in “cannabis and hemp extraction equipment, technology, lab design and site planning.”
  • Cascade Sciences, which makes processing equipment such as vacuum ovens and evaporators.

Agrify said the two brands have collectively worked with more than 1,000 marijuana and hemp businesses. Agrify said it expects the acquired brands to generate roughly $40 million in revenue in 2021.

The $50 million acquisition includes $30 million in cash and $20 million of Agrify stock.

The price might increase to up to $65 million based on Cascade’s and Precision’s performance for 2021.

Billerica, Massachusetts-based Agrify makes hardware and software for cannabis cultivation and other crops.

The company went public in January and raised additional capital through an underwritten public offering in February.

Agrify trades as AGFY on the Nasdaq.