July 10, 2018

Arable Capital Partners has acquired its second irrigation company in three months. The firm announced that it has partnered with company principle Steve Borra Jr. to acquire California-based Lodi Pump and Irrigation (LPI) for an undisclosed amount.

In business for 30 years, family-owned LPI has set the standard for drip and sprinkler irrigation design and service, growing to become one of the most respected and largest service providers for high-value crops in the area, including almonds, grapes, walnuts, olives, and others.

Headquartered in Bellevue, Washington, and Bakersfield, California, Arable was launched by a team of highly experienced industry veterans who are aiming to fill the funding gap that exists in the food and agriculture sectors. In this pursuit, Arable announced its first and final close of its maiden fund at $300 million in August 2017.

At the time, Chris Brenes, vice president of Arable Capital Partners, told GAI News that the focus of the fund will be on operating businesses in agriculture, so investments could be anywhere in the spectrum of crop types as well as businesses that aren’t tied to a particular crop.

“The formation of Arable is primarily driven by the attractive investment opportunities we are seeing throughout the market, and a belief that Arable is uniquely suited for the food and agribusiness sector with our team of experienced agricultural operators and investors.” said Derek Yurosek, managing director of Arable.

It was LPI’s geographic footprint and reputation that were initial draws for the Arable team.

“Steve has grown LPI by entering new markets and adding additional product offerings. We are excited to partner with Steve and continue to invest for the long-term,” said Derek Yurosek, managing director of Arable Capital Partners.

Greg Richards, also managing director at Arable, noted, “When we look at the business operation, history of outstanding customer service and leadership that Steve and his team have at LPI we see a great fit for Arable and the type of business we like to invest in.”

Borra Jr., who will remain in place as president of LPI after the close of the deal, said that with Arable’s backing the company will be better positioned to enhance the service the company provides to its customer base, while also offering better opportunities to its partners and employees.

“Our family saw a great cultural fit with Arable from the start and quickly developed a collaborative relationship with their team,” said Borra Jr. “This combination will help us better serve our customers and provide enhanced opportunities for our employees and business partners.”

This is the second irrigation company acquired by Arable in only a matter of months. In April of this year the firm announced it had acquired Hydratec, another California-based, full-service irrigation company.

Founded in 1981 in Delano, California, Hydratec initially focused on working in the permanent crop space with tree and vine growers, however, the company has recently experienced growth in its row crop customers as demand for drip irrigation climbs across a range of agricultural production types.

Amid this demand, Hydratech has gained a reputation throughout California for its cutting-edge technology and high-quality service to both family farms and large corporate operations, and has expanded its business across the geographies of Florida, Washington State, Mexico, China, and Nicaragua.

-Lynda Kiernan