April 25, 2018

Arable Capital Partners has announced its acquisition of Hydratec, a full service irrigation company and leader in the advancement of micro irrigation tech.

Founded in Delano, California, in 1981, Hydratec has not only gained a reputation throughout California for its cutting-edge technology and high quality service to both family farms and large corporate operations, but has conducted business across geographies including Florida, Washington, Mexico, China, and Nicaragua.

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

“We are very impressed by Hydratec’s customer relation and service approach which aligns with our thesis around long-term business focus,” said Derek Yurosek, managing director, Arable Capital Partners. “We are looking forward to working with Hydratec’s management team to expand the company’s operations and continue innovating in the irrigation space.”

This is the second deal announced by Arable within a months’ time. On April 4, GAI News shared Arable’s announcement that it had acquired Fresh Innovation California – a leader in the fresh sliced apple category.

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 August of last year, the firm announced the first and final closing of its maiden fund at $300 million.

Aware that by its very nature, agriculture requires a long-term investment outlook, Arable is targeting investments in operations headquartered in the Western region of the U.S. – often with family management or operating teams, along the entire agricultural supply chain – that will have a span of 15 or more years.

Chris Brenes, vice president of Arable Capital Partners, told GAI News last August upon the closing of their first fund, 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, such as Hydratec.

Moving forward, Arable’s dynamic and experienced team plans to partner with Hydratec’s existing management to not only maintain its current customer base, but to expand the company’s offerings.

“We are excited to have Hydratec as part of our portfolio,” said Greg Richards, managing director, Arable Capital Partners. “The team involved and the company’s position in the irrigation sector makes for a winning combination positioned for growth.”

“Our new partnership and our combined vision of long term growth will give us the ability to continue to be an industry leader for the next generation of farmers,” added Chad Lilze, general manager, Hydratec.

-Lynda Kiernan