Two Rivers completes second phase of acquisition
Two Rivers Water Company announced it has completed the second and final phase of purchase of the assets of Dionisio Produce & Farms, LLC. The company simultaneously entered into a long-term employment agreement with Russ Dionisio making him the President and Chief Operating Officer of Dionisio Farms & Produce, Inc., a wholly owned subsidiary of Two Rivers. As President and COO, Russ Dionisio, a third-generation farmer, will manage all farm and produce operations for Two Rivers.
John McKowen, Founder and CEO of Two Rivers stated, "In June 2012, Two Rivers made a $600,000 equity investment in the first phase of the Dionisio acquisition, which planted 385 acres of cabbage, pumpkins, squash and parsnips. The first phase generated more than $900,000 in revenues in 2012 with greater than 30% gross profit margins in only a partial year of production. Next year, we will plant 675 acres on the Dionisio farms. Two Rivers is fortunate to be able to partner with Russ Dionisio and his family in developing a mutually beneficial and profitable farming relationship."
McKowen further stated, "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. It is a great asset to own and a great asset to operate. It perhaps is the best hedge against U.S. Dollar inflation. It's not only an asset hedge, it's also an income hedge."
In 2013, Two Rivers expects to triple its acreage in vegetable row crops and achieve greater gross profit margins through increased economies of scale. Ultimately, Two Rivers plans to put 30,000 acres into high value vegetable row crops along the Arkansas River in Colorado and build the associated vertical industries.