Key Takeaways:
- Expansion of Product Line: Inverness Graham’s Custom Agronomics acquires BioTek Ag, broadening its range of liquid plant nutrients and nitrogen stabilizers.
- Strategic Growth: The acquisition extends Custom Ag’s geographical reach in the Midwest and Southeast U.S. regions.
- Enhanced Product Offering: BioTek will bolster Custom Ag’s portfolio with its nutrient use efficiency products and experienced team.
- Ongoing Acquisition Strategy: This move is part of Inverness Graham’s Green Light strategy, focusing on environmentally sustainable investments.
- Unrevealed Transaction Terms: The specifics of the deal remain confidential.
Acquisition Details
Inverness Graham, through its Green Light buyout strategy focusing on environmental sustainability, announced that its portfolio company based in Florida, Custom Agronomics (“Custom Ag”), has acquired Clinton, NC based BioTek Ag (“BioTek”). This acquisition aims to expand Custom Ag’s assortment of private-labeled liquid plant nutrients, nitrogen stabilizers, and other specialty products. These enhancements are expected to improve agricultural yields and soil health significantly.
Strategic Implications for Custom Ag
Paul Nolen, Managing Principal at Inverness Graham, expressed optimism about the acquisition’s potential to strengthen the company’s market position. “The acquisition of BioTek is an exciting opportunity for the combined business,” Nolen stated. “It not only builds upon Custom Ag’s strong private-label model and nutrient use efficiency product offering but also enhances our formulation expertise and expands our portfolio offerings to a new and broader customer base.”
Tom Snipes, CEO of Custom Ag, echoed this sentiment, highlighting the strategic benefits of the integration. “BioTek is an exciting strategic acquisition for the overall business. It strengthens our nutrient use efficiency product offering as well as the talent on our team. We are pleased to offer an even broader private label solution to existing and new customers,” Snipes remarked.
BioTek’s Perspective
From BioTek’s standpoint, the merger with Custom Agronomics represents a pivotal growth opportunity. BioTek’s founders, Jim Wendling and Kim Tart, commented on the merger’s cultural and operational synergies. “Custom Agronomics is an ideal partner for BioTek’s next chapter of growth,” they stated. “We share a commitment to exceptional products and service via a private label offering and believe there is significant cultural fit between the two organizations. The capabilities of the combined platform will allow us to better service our customers and pursue new opportunities.”
Future Directions for Inverness Graham and Custom Ag
This acquisition marks the second of three active portfolio companies under Inverness Graham’s Green Light strategy, which is dedicated to fostering businesses that enhance environmental sustainability within the agriculture and turf markets. The strategy underlines Inverness Graham’s commitment to supporting strategic acquisitions and organic growth initiatives aimed at expanding the environmental impact of its portfolio companies.
Photo by Harshal More on Unsplash
