July 8, 2019

by Lynda Kiernan

New York-based private equity firm Blue Road Capital announced its acquisition of B&W Quality Growers, one of the leading vertically-integrated producers of a range of baby/specialty leafy greens, including watercress and arugula. 

Blue Road is an agricultural-focused private equity investment fund that targets the acquisition of ‘control positions’ in businesses within the agricultural and food/ingredient supply chains in the Americas.  With a management team that has more than 60 combined years of experience in private equity and agriculturally-focused businesses,  Blue Road partners have a track record of having raised and invested more than $2 billion for companies involved in agricultural production, processing, storage, logistics, marketing, and distribution.

“We are delighted to announce the acquisition of B&W as our platform in the specialty leafy green industry,” said John Duryea, founding partner, Blue Road Capital. “We have been studying the category for several years and have been familiar with B&W and its reputation for quality and food safety for some time.”

In July 2016, Blue Road Capital announced its final close on the largest debut agriculture fund with an exclusive focus on production and supply chains in the Americas. The fund,along with its parallel fund, was able to secure $433 million of commitments from  a diverse group of Limited Partners, including university endowments, pension funds, family offices and real assets investment advisors. 

“B&W is uniquely positioned as a platform for continued consistent growth,” said Duryea. “We look forward to partnering with Mark and B&W’s management team to continue B&W’s growth in the foodservice and retail markets and augment its specialty green product offering.”

B&W 

Founded in 1870, B&W is a pioneer in the production of specialty leafy greens, growing, packing, and shipping high-quality products to retail, foodservice, wholesale and specialty customers on a year-round basis.

With its headquarters located in Fellsmere, Florida, the company owns three processing facilities in three states, and sources from seasonal farms   across eight states. This geographic spread allows the company to employ a farm rotation program, giving each farm an “off season” for rejuvenation.

The company’s production methods adhere to smart and sustainable practices that have reduced its chemical usage by more than 50 percent over the past decade. In addition, its advanced water recirculation process replenishes the water table and saves valuable resources. This attention to sustainability have secured the company GLOBAL G.A.P certification, a voluntary worldwide standard that ensures safe, sustainable agricultural production.

This partnership with Blue Road will give B&W the ability to further scale and expand its long-standing and ecologically-responsible business into new markets.

“We are very excited to begin the next chapter in the B&W growth story with Blue Road’s acquisition of the company,” said Mark DeLeo, CEO, B&W. “Blue Road’s sole focus on agriculture and the supply chain were significant reasons for our picking them as our partner. Their unique network of relationships will offer us access to capabilities and markets we could not have gotten on our own.”

“B&W is uniquely positioned as a platform for continued consistent growth,” said Duryea. “We look forward to partnering with Mark and B&W’s management team to continue B&W’s growth in the foodservice and retail markets and augment its specialty green product offering.”

Building Platforms

For Blue Road, the addition of B&W to its portfolio represents the formation of its third investment platform, and a foundation from which to build out a new channel for growth.

“Following Blue Road’s purchase of Diamond of California in December 2016, National Pecan and Diamond were consolidated into one company, Diamond Foods Holdings, LLC. Accordingly, the Fund currently has three platforms,” Robert LaRocca, Blue Road Capital, explained to GAI News:

~ Diamond Foods Holdings, LLC – a producer, processor, and distributor of an assortment of nuts including walnuts and pecans

~ The Vanguard International Group, LP – a vertically integrated produce company, whose products includes table grapes, apples, and stone fruit.

~ B&W Quality Growers, LLC – a producer, processor, and distributor of distinctive baby leaves including green watercress, red watercress, baby arugula, red kale and baby spinach.

To-date, approximately 75 percent of the fund is currently committed across these three platforms. At this time, Blue Road is considering add-on investments to round out the B&W platform that may include traditional leafy green growers, or platforms in the alternative space of vertical or indoor farming, while also searching for a fourth platform to complete the fund’s capital investments.

– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.