Ottawa-based Growcer, led by CEO Corey Ellis, has acquired the assets of its American competitor Freight Farms after the latter declared bankruptcy in April, culminating a successful bid three months later. The acquisition, valued at $2.6 million USD, enhances Growcer’s portfolio by adding approximately 600 new customers worldwide and control over Freight’s proprietary software.
After receiving the keys, Ellis and Growcer’s chief of staff, Florent Schmal, expressed a commitment to preserving the legacy of a pioneering company in vertical farming. They emphasized the importance of maintaining industry credibility and growing its potential within the overall food system.
Growcer, co-founded by Ellis and CFO Alida Burke in 2016, specializes in modular vertical farm units adaptable to extreme climates. Freight Farms, established in 2012, also provided containerized vertical farms with a unique design advantage, which Growcer intends to integrate. The Boston-based company suffered financial setbacks following an unsuccessful SPAC attempt, leading to its bankruptcy and management changes.
Ellis attributes Freight Farms’ downfall to financial misjudgments and is confident in avoiding similar pitfalls with Growcer’s disciplined growth strategy. He highlights the significance of customer satisfaction and repeat business in building success.
Growcer has recently returned to profitability and expanded its offerings to include turn-key climate-controlled food storage solutions, aiding food banks and communities. The company has also established a $30-million special purpose fund to support its customers with an “as-a-service” model, allowing them to pay monthly fees for the farming and storage solutions.
With access to Freight Farms’ customer base, Growcer plans to seamlessly combine the strengths of both companies to enhance its services.