LAFAYETTE — Indoor cannabis agriculture engineering firm Urban-gro Inc. (Nasdaq: UGRO) has completed its acquisition of Dawson Van Orden Inc., based in Houston. The deal was first announced in October.
The acquisition of “substantially all” of DVO’s assets was completed through Urban-gro subsidiary Urban-gro Engineering Inc. DVO specializes in indoor controlled-environment agriculture systems.
“DVO provides several levers for growth, including cross-selling benefits, enhanced margin capture, and an expansion of our professional services offering,” Bradley Nattrass, chairman and CEO of Urban-gro, said in a written statement. “The added engineering depth is particularly valuable at a time when we are seeing strong demand for both our professional services, and our turnkey design-build offering. We look forward to DVO’s contributions as we work together to expand our CEA footprint.”
Urban-gro paid $6.1 million after working-capital adjustments. Another $1.1 million of contingent consideration could become payable in cash or equity at the company’s discretion.
Former DVO president Jason Dawson now serves as executive vice president of engineering for Urban-gro.
“Urban-gro is an incredible company with a vision and trajectory that my partners and I wanted to join,” Dawson said in a written statement. “My team — including mechanical, electrical, plumbing, and fire & safety engineers, as well as an industrial architecture team that was formerly at AECOM — are excited to continue to integrate into projects and be a part of a much larger team and company that is rapidly scaling to meet demand. As we have already been working on joint opportunities in both the CEA and Industrial sectors, I’m confident that we will assimilate quickly and be able to take advantage of the immense opportunities in front of us.”
The DVO operation includes 24 people in Houston.