April 4, 2018

Washington State and California-based private equity firm  Arable Capital Partners (Arable) has acquired Fresh Innovations California located in Oxnard, California, for an undisclosed amount. Alpine Capital also was a part of the transaction as a minority investor.

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. And 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.

“There’s a lot of family businesses that are multigenerational that are trying to figure out how to transition,” said Greg Richards, managing director of Arable Capital Partners, in speaking with the Seattle Times in September of last year. “Maybe the kids aren’t interested,” he said, “or some members of an extended family want to sell their stakes. We think we can be a real good fit for that.”

Fresh Innovations

Founded in 2011, Fresh Innovations has grown to be a leader in fresh sliced apple category. Under the company’s mission “to provide innovative products that are great-tasting, convenient, and healthy,” the company provides  both organic and conventional packaged fresh fruits and vegetable products to warehouse clubs, casual dining establishments, and to the education, entertainment, and health care sectors.

Through this transaction, Arable will be partnering with Fresh Innovations’ management team to expand their existing operations and to pursue further innovation in the fresh food value-added space.

“We like the Fresh Innovations approach to healthy, convenient, fresh snacks and are excited to partner with Toby Cohen, Gary Madson, Todd Nelson, and the rest of the team to support their growth plans,” said Richards of Arable Capital Partners.

Particularly attractive to Richards is the potential for sliced apples, as he expressed to And Now You Know, stating, “I’m excited about this announcement for a couple reasons. We think sliced apples are part of a very exciting category in healthy fresh snack food. It’s also nice because it has been a very active first part of the year for Arable with this and some other things in the pipeline.”

In response, Fresh Innovations’ Toby Cohen told And Now You Know that the company was attracted to partnering with Arable due to the firm’s eye targeting innovation and growth, as well as its long-term investment model.

“Fresh aligns well with the Arable investment thesis in midstream agribusiness. As one of our first investments, this is a great partnership that will allow Fresh Innovations and Arable to capitalize on a successful existing business positioned for expansion,’ said Richards.

-Lynda Kiernan