The North American horticulture market can now rely on a one-stop irrigation and automation supplier since the newly formed AdeptAg acquired AgriNomix and Zwart Systems. “Our goal is to put together a North American platform to better serve our customers’ needs,” says CEO Rick Parod.
Private equity LLR is behind the investment in AdeptAg, which utilized the capital to acquire AgriNomix and Zwart Systems. On top of that, AdeptAg is planning to further leverage the partnership with LLR to continue expanding the company's capabilities as well as to pursue additional acquisitions to better serve CEA growers.
The end goal is to support growers with an issue they often face. “There are difficult situations when you have to work with many suppliers to complete a project,” Rick points out. “With those acquisitions, we are creating a platform to greatly facilitate that.”
Different crops, same challenges
According to Rick, such a service can be particularly valuable now that many new players are joining the horticulture industry. “Every grower is affected by the fact of having to juggle between different suppliers. There are growers with more experience in using different manufacturers, but they might still have some issues because of distances and time differences. On the other hand, new growers, such as cannabis growers or vertical farmers, might not be super familiar with all the tribulations of the process. As these growers get started, we can walk them through the process and identify ways to reduce costs.”
According to Rick, there will be even more vertical farms, as rapid growth is expected with the increase in the demand for leafy greens and interest in local production. At the same time, the cannabis space is poised to continue growing. “We are seeing a greater push for legalization, as more and more states are opening up to cannabis. Cannabis growers will keep working to increase their operational efficiency to stand out in a very competitive market.”
Stepping in quickly
Such a unique platform is also necessary to reduce the lead time and allow growers to get into the business in the shortest time. “Lead times are a problem for new growers. This is going to be essential for the future growth of the sector as a whole,” Rick remarks. “The North American market is primed for really good growth, and we are seeing it happen. Yet, it could happen faster if logistical issues are reduced, for instance.”
Thus, Rick and AdeptAg are now all geared up to support horticulture in North America, regardless of the crop. “Our mission is to provide the best-in-class product to our customers, as well as to provide support to improve efficiency and optimize their operation, in a crop agnostic way.”
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