A farmland acquisition company has bought a Colorado vegetables grower-shipper.
Denver-based Two Rivers Water Co. purchased the assets of Pueblo, Colo.-based Dionisio Produce & Farms Inc., according to an Oct. 5 news release.
Two Rivers finished the second and final phase of the Dionisio purchase transaction, according to the release.
The purchase makes Dionisio a Two Rivers wholly-owned subsidiary, according to the release.
In June, Two Rivers invested $600,000 in equity in the Dionisio acquisition by planting 385 acres of cabbage, pumpkins, squash and parsnips.
That first phase generated more than $900,000 in revenue and raised more than 30% gross profit margins during the first partial year, according to the release.
Next year, Two Rivers plans to plant 675 acres.
Concurrent with the purchase, Two Rivers entered into an employment agreement with Russ Dionisio, a third-generation famer, making him the new company's president and chief operating officer.
Dionisio will manage all the company"s farming and produce operations, according to the release.
"Two Rivers is fortunate to be able to partner with Russ Dionisio and his family in developing a mutually beneficial and profitable farming relationship," John McKowen, Two Rivers' founder and chief executive officer, said in the release.
"We're not the first to recognize this, but it is quickly becoming our experience. Irrigated farming, producing high-yield, high-value, vegetable row crops on irrigated farmland with senior reliable water rights, is a great investment."
In 2013, Two Rivers plans to triple its vegetable acreage and increase profits, according to the release.
Two Rivers ultimately plans to farm up to 30,000 acres of vegetables along the Arkansas River in southern Colorado and build the associated vertical industries, according to the release.