Canadian firm acquires major Vermont maple syrup equipment producer

A significant Vermont-based producer of kit for producing maple syrup has been acquired by a Canadian firm aiming to increase its footprint within the U.S. market.

Chief Evaporator, which employs about 60 individuals at its headquarters in Swanton and has billed itself as the most important producer of its variety on the earth, was acquired in June by Quebec-based H2O Innovation, the Canadian agency introduced in a press launch.

H2O Innovation primarily designs and manufactures water remedy programs, although it additionally produces tools for the maple sugaring business. Its current maple enterprise had about 50 distributors within the jap U.S. in addition to a retailer in Swanton.

Officers from H2O Innovation stated the deal will permit each corporations’ merchandise to be bought throughout a bigger, mixed community of distributors. Additionally they wish to capitalize on rising international demand for maple syrup and the tools to supply it, they stated. 

The acquisition additionally comes as sugarmakers on either side of the border reported report harvests this 12 months, thanks partially to favorable climate that allowed for an extended season.

“H2O was already right here, however now it’s merely turn out to be the strongest maple firm within the U.S. with the acquisition of Chief,” stated Rock Gaulin, the corporate’s vp and basic supervisor for maple, in an interview this week. 

H2O Innovation plans to proceed promoting merchandise below the Chief Evaporator model, which Gaulin known as a “highly effective title” within the maple sugaring business. The corporate was based in 1888 in Enosburg Falls, a couple of half-hour drive from its headquarters as we speak.

Chief Evaporator makes a spread of maple syrup manufacturing tools together with spouts, filters, vacuum pumps and sap evaporators, amongst many different objects. 

Following its acquisition, H2O Innovation plans to rent a couple of dozen extra staff at Chief Evaporator’s 100,000-plus-square-foot plant in Swanton, Gaulin stated. The corporate additionally is about to put in a brand new tubing extrusion machine on the facility, he stated. 

Gaulin stated he couldn’t disclose the greenback quantity of the acquisition.

Tim Smith, govt director of the Franklin County Industrial Growth Corp., stated the deal is “very optimistic” for Chief Evaporator, which had been struggling financially for a number of years partially as a result of rising competitors inside the maple business.

To assist alleviate a few of Chief Evaporator’s debt, Smith stated, the Growth Corp. bought its Swanton plant in December 2021 for about $2.5 million. The Growth Corp. was leasing the ability again to Chief Evaporator on a 10-year time period, and plans to proceed that association with H2O Innovation, he stated. 

Smith additionally stated that Chief Evaporator will profit from H2O Innovation’s expertise constructing water filtration programs, which may enhance its personal filtration merchandise.

“Hopefully they’ll discover employees and develop the job base of our county,” he stated. 

A spokesperson for Chief Evaporator didn’t reply to a request for remark.

In a press release earlier this 12 months, Chief Evaporator President Jeff Smith stated the 2 corporations shared values and that the acquisition would spur development for each.

The businesses agreed in 2020 to start promoting a restricted variety of their merchandise at one another’s distributors.

Peter Gregg, writer of the Rupert-based commerce publication The Maple Information, stated he thinks H2O Innovation’s acquisition will profit your entire maple business. He cited knowledge that international demand for maple merchandise grew 20% year-over-year in 2020 and 2021.

“There’s great demand to supply extra syrup,” Gregg stated. “So we want these corporations to thrive and develop and improve their capability. And that is what it will do.”