NativeSeed Group, a portfolio company of Heartwood Partners, has acquired Arrow Seed, a producer and supplier of conservation and farm seeds.
Arrow Seed specializes in native grass, wildflower, forages, turf grasses, small grains, and various seed mixes for farm and conservation applications, primarily serving the Midwest. Arrow’s customers include seed distributors, retailers, farmers, state and local conservation districts, municipalities, and private landowners.
Arrow Seed’s facilities include 60,000 square feet of seed conditioning, distribution, and retail space in Broken Bow, Nebraska, approximately 210 miles west of Omaha.
Established in 1946 in Broken Bow, Arrow Seed has been under the same family ownership since 1954 when Leonard Girardin purchased the business. Four generations of the Girardin family have worked at Arrow Seed, including Jim Girardin Sr., who led the business starting in 1979 after the passing of his father, Jim Girardin Jr., who took over leadership of the business in 2011, and Logan Girardin, representing the fourth generation, who joined the business in 2015.
Heartwood Partners acquired NativeSeed in April 2022, and the purchase of Arrow Seed marks its second add-on acquisition, following the acquisition of Kansas-based Star Seed in November 2023. The acquisition of Arrow Seed, like that of Star Seed, expands NativeSeed’s geographic footprint in the Midwest and enhances its product portfolio with expanded warm-season seed varieties.
NativeSeed is a provider of native and conservation seed, farm seed, and erosion control products used in land reclamation, conservation, agriculture, and consumer applications. The company’s brand names include Granite Seed, S&S Seeds, Pacific Coast Seed, Kamprath Seed, Bruce Seed, Nature’s Seed, and Star Seed. NativeSeed carries over 1,000 seed varieties, in addition to a complete line of erosion control products.
Customers of NativeSeed include federal and state government agencies, contractors, hydro-seeders, Fortune 500 corporations, landscape architects, non-governmental organizations, ranchers, and small landowners. NativeSeed is led by CEO Rob Wendell and operates a vertically integrated sourcing and production platform, comprising farming, wildland collection, procurement of native grass, wildflower, and shrub seeds, as well as seed cleaning and conditioning facilities.
NativeSeed is headquartered near Santa Barbara in Carpinteria, California, and operates four state-of-the-art farming, processing, and cleaning operations with 4,000 irrigated acres, including Bruce Seed Farm in Montana, L&H Seed Farm in Washington, Hedgerow Farms in northern California, and S&S Seed Farm in southern California.
“We were fortunate to have been presented with this opportunity as we continue to expand our geographic footprint,” said Mr. Wendell. “Arrow Seed’s core values, rooted in providing customers with high-quality custom seed mixes on a just-in-time basis, align perfectly with how we do business. We also see a tremendous fit with our Star Seed operation in nearby Osborne, Kansas, by sharing resources and best practices in procurement and customer service. Both entities will be better positioned to deliver immediate value to the market and be ideally positioned to meet projected long-term growth in cover crops and conservation throughout the Midwest.”
“We are pleased to support NativeSeed with its second strategic acquisition, helping the platform further add scale and grow its footprint,” said James Sidwa, a managing partner at Heartwood. “We look forward to continuing to build NativeSeed Group’s portfolio of brands and continuing to invest in future growth.”
Heartwood invests in United States-based companies with revenues from $20 million to $250 million and EBITDA between $5 million and $30 million. Sectors of interest include food, agriculture, specialty chemicals, niche manufacturing, packaging, and industrial and consumer services.
Heartwood is currently investing through its fourth fund, Heartwood Partners Fund IV LP. The Norwalk, Connecticut-based firm was founded as Capital Partners in 1982 and changed its name to Heartwood Partners in September 2020.
Verdant Partners was the financial advisor to Arrow Seed on this transaction.
© 2024 Private Equity Professional | August 2, 2024
