A deal to reduce debt, Hydrofarm sells Aurora Peat for $16M, launches Project Agility

Hydrofarm Holdings Group, Inc. (Nasdaq: HYFM) has completed the sale of Aurora Peat Products ULC to Raven Holdings LLC, a private company, for $16 million. The deal includes a $5 million promissory note, with the remaining proceeds earmarked to reduce outstanding term loan debt.

Raven Holdings is led by former members of Aurora Peat’s management team, including Bowe McGinnis, who serves as manager of the acquiring entity. Aurora Peat will continue operating as a peat products supplier for the global horticultural market under the new ownership.

The two companies will maintain a commercial relationship: Aurora Peat will continue supplying Hydrofarm’s grow media business, and Hydrofarm will continue distributing Aurora Peat’s consumer gardening products under a supply agreement.

Separately, Hydrofarm announced the launch of Project Agility, an initiative aimed at scaling its logistics services platform into adjacent sectors. The company said its logistics services business currently represents a small portion of its overall operating results.

Chief Executive Officer Bill Toler said the divestiture is intended to simplify Hydrofarm’s operating model and reduce debt. Senior Vice President Eric Ceresnie described the moves as supporting a shift toward a “leaner and more focused organization.”