SIGNIFICANT ACQUISITION INDICATES EXPLODING GROWTH IN RAINWATER INDUSTRY
Dripping Springs TX, July 22 — HARVEST RAIN, Inc., an emerging growth leader in the rainwater industry, has acquired Central Texas’ pioneering leader, TANK TOWN, founded by Richard Heinichen in 1994 in Dripping Springs.
Denver Fredenburg, president of Harvest Rain, Inc., said his firm was founded in 2014 after market analyses of Texas’ rainwater industry pointed toward a market with rapidly accelerating growth momentum in the immediate- as well as the long-term residential and commercial sectors.
Noting the growth in Harvest Rain since it opened, Fredenburg said: “Harvest Rain’s sales have exceeded our projections significantly. Sure, we began with only a handful of customers but we’re currently logging in sales numbers initially anticipated a few years down the road. Growth in rainwater harvesting is definitely a phenomenon in Central Texas and beyond.”
Asked for causes behind rainwater’s burgeoning popularity, Fredenburg cited several reasons. “Explosive growth in central Texas accounts for a great deal of the expansion. Hays County is among the U.S.’ fastest growing counties, and increasingly residents want rainwater systems installed during construction of their new homes.
“Water quality is the biggest reason educated consumers cite for switching to rain water. They realize the quality and taste of rainwater simply cannot be surpassed. It is nature’s perfectly balanced water, and the taste is better than city, well, or bottled water.
“Control of one’s water supply is another big reason homeowners switch to rainwater. Given the historic drought conditions in Texas, homeowners don’t want to deal with the well running dry or have to listen to rumors that the aquifer might be running dry. They want to manage their water supply and usage – a capability that rainwater collection and storage offers.
“And finally there’s a growing market segment of water conservationists devoted to a green lifestyle generally and to rainwater catchment for the sake of protecting the local as well as the global water supply for the long-term.”
Fredenburg remarked, “With market research affirming the growth potential in rainwater, we then had the good fortune to meet Richard Heinichen of Tank Town. Richard has become a living legend among folks in the rainwater community as an innovative pioneer way ahead of his time. His entrepreneurial prowess anticipated the huge revival in rainwater that started in the early 1990s. All of us in the business today are essentially riding the big wave he created.”
He continued: “Richard has done everything possible to generate a seamless transition in passing the torch and turning over the business. His iconic reputation has helped in every respect and no doubt will continue as we expand into new geographic markets. Toward that goal, we have been receiving calls from potential customers in many outlying areas, such as the Panhandle, East Texas, and South Texas. We hope to expand our business through acquisitions and eventually through greater commercial applications as well. Bottom line is the rainwater industry is poised for vigorous expansion which we plan to pursue in whatever direction the industry grows.”
Harvest Rain, Inc. engaged EQ Capital Strategies, LLC to assist with the purchase and financing of the Tank Town assets. EQ Capital Strategies is an Austin-based merger-and-acquisition advisory firm that provides buy and sell side advisory services to small and middle market companies. EQ will continue to work with Harvest Rain to identify and acquire other companies that help Harvest Rain build a vertically integrated rainwater collection and water storage company serving all of Texas and the Southwest.
President Denver Fredenburg and Vice President Matt Haney, Harvest Rain’s founding management team, were both business executives in Austin. Fredenburg, a resident of Dripping Springs, became interested in the rainwater business a few years ago after buying a home dependent on rainwater for all water usage. At the time, he served as CEO of Austin’s Hyperwear and prior to that was a sales/marketing executive with Nike and other national brands in the consumer goods field.
A native Texan from Wichita Falls, Matt Haney has built a career niche in Austin in sales and marketing for small- and medium-size businesses. He most recently developed and managed Trigger Point ‘s international sales and marketing and previously assisted other small businesses expand their market share and move to the next step.
Financial terms of the acquisition were not disclosed but the sale included all of Tank Town’s assets except its headquarters building and property which Harvest Rain is leasing temporarily for several months. Harvest Rain’s new headquarters is the highly recognizable property of Tank Town’s former home base on Highway 290 three miles west of Dripping where many pastel-colored water cisterns dot the field in front of office and storage buildings.
On the residential side, Harvest Rain designs, constructs, and installs complete systems for rainwater collection and storage for new and existing homes. The company also sells replacement components such as cisterns, filters, pumps, and UV lights. Harvest Rain is one of the few area rainwater firms to offer customers an annual contract for quarterly maintenance of rainwater systems.
In addition to its residential business, Harvest Rain also has a commercial division that designs and installs fire protection, storm water mitigation, and public water supply systems. Harvest Rain Commercial Services works directly with engineers, developers, and business owners to achieve a comprehensive water management strategy.