• 100-year-old company looking for buys in adjacent farm automation segments
• Targets can have up to USD 100m of enterprise value

Ritchie Industries, a manufacturer of automated livestock watering products, is eyeing its first acquisitions, said Jim Clark, partner with new private equity (PE) owner Granite Creek.

Although the Conrad, Iowa-based company has never made acquisitions, “over our hold period, we will absolutely monitor opportunities to acquire.” Targets can have up to USD 100m in enterprise value.

Geography is not a key consideration for acquisitions because Ritchie’s product is largely sold through dealers, he said.

It would look at “anything in the hydration space,” Clark added. The target companies could serve ruminants, swine, poultry, zoo animals or companion animals. It could also look at acquiring manufacturers of other rotationally molded products for farms, including waterers and adjacent product categories such as mineral feeders. Ritchie manufactures plastic waterers with steel troughs.

With Ritchie, “the play for growth is threefold,” Clark said. It is already a leading player in ruminants, both beef and dairy, where there is more white space to grow among larger dairies and feed yards, he said. Secondly, it plans to further penetrate the equine market, the company’s newest and fastest-growing segment, Clark said. Finally, it plans to offer product enhancements and new products such as larger troughs. The company is currently rolling out a 14-foot waterer, he said.

Ritchie plans to incorporate technology into waterers through new products or retrofits of existing products, he said. The technology would monitor water levels and sync with farm management systems and veterinarians, Clark said.

Chicago-based Granite Creek invested in Ritchie in January. The sponsor is around two-thirds deployed on its third fund after the investment, as reported by this news service.

When asked about the impact of tariffs on Ritchie, Clark said “management thinks the impact will be mild if any.” Ritchie is a US manufacturer, with materials almost entirely sourced from the US, he added.

Competitors include Nelson Manufacturing and Drinking Post in the equine segment and Miraco in the ruminants space.

The company’s automated livestock watering products for cattle, horses, sheep, goats, and other livestock range from single-stall waterers to fountains that can accommodate 500 cattle per unit. The products are sold in all 50 states and 20 countries, according to a press release.

Holland & Knight advised Granite Creek on the acquisition. Prairie Capital advised Ritchie.