June 23, 2021

By Lynda Kiernan-Stone, Global AgInvesting Media

Food and ag investor Arable Capital Partners has expanded its fruit holdings, announcing that it has acquired Royal Ridge Fruits, Dorsing Farms, and related entities, through a partnership with the Dorsing family. 

Under the terms of the deal, Arable Capital is acquiring the farming operations, which have grown to more than 2,500 acres, processing operations, and Royal Ridge Fruit & Cold Storage with the establishment of Royal Ridge Farms in which Arable will hold a “meaningful equity stake”.

Based in Royal City, Washington, Royal Ridge is a leading vertically integrated grower and processor of both conventional and organic tart and sweet cherries, apples, blueberries, and other assorted dried and IQF (individual quality frozen) fruits under the Stoneridge™ Orchards brand, which are used as ingredients of choice for food manufacturers of ready-to-eat hot cereals, granola, baked goods, fruit & nut bars, trail mixes, and other products.

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.

“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 back in September 2017. “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.”

Through this newly formed partnership, the Dorsing family will continue as owners and manage the day-to-day operations of the business, while Arable partners with the company’s existing management team to foster further growth for the business and its operations.

“Royal Ridge sought a strategic partner who is well versed in vertically integrated agriculture and  shares our collective vision for future growth. Arable provided the right structure that worked for our family and has a good mix of  operational and investing experience, and aligned well with our goals,” said  Kevin Dorsing, CEO, Royal Ridge Fruits.

Scott Dorsing, president of Dorsing Farms, also noted how Arable Capital and the Dorsing family aligned culturally, adding how the family appreciated Arable’s long-term approach to its investments.

Derek Yurosek, managing director with Arable commented, “This is a fantastic partnership in a vertically integrated platform investment that will allow us to capitalize on additional growth opportunities.”

Royal Ridge will be joining Arable’s existing category holdings including Oxnard, California-based Fresh Innovations California, a leader in the fresh sliced apple category, acquired in April 2018; Stockton, California-based Farmington Fresh Cuts, a processor of fresh sliced apples, oranges, pears, and other packaged fruit, acquired in June 2018; and Pacific Trellis Fruit / Dulcinea – one of the U.S.’ top year-round growers, importers, and marketers of premium fresh fruit including melons, table grapes, citrus,  cherries, stone fruit, among others, under the Dulcinea brand – acquired earlier this year, in February.

“With this investment we are getting great partners in a farming and processing business in the fresh, dried and frozen fruit sector that we really like, particularly organics,”  said Greg Richards, managing director, Arable. “We have spent a lot of time in our home state of Washington looking at the industry and feel that Royal City, WA, is one of the premier growing regions in the United States.”

Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan@globalaginvesting.com.