-Acquisition Expected to be Accretive for Fiscal 2017-
-Expands Company's Lemon and Orange Holdings by 210 Acres -
-Increases Ownership in Citrus Packing and Marketing Operation in La
Serena, Chile-
SANTA PAULA, Calif.--(BUSINESS WIRE)--
Limoneira Company (the "Company" or "Limoneira") (NASDAQ: LMNR), a
leading agribusiness with prime agricultural land and operations, real
estate and water rights in California and Arizona, announced today that
it has acquired the majority of Pan de Azucar S.A. ("PDA"). PDA owns
approximately 210 acres of lemon and orange orchards near La Serena,
Chile and an equity interest in Rosales, S.A, ("Rosales"), a citrus
packing, marketing and sales operation in La Serena, Chile.
On February 24, 2017, through its wholly owned Chilean subsidiary,
Limoneira Chile SpA, Limoneira completed the acquisition of 90% of
outstanding stock of PDA, for $5.8 million in cash. PDA also had
approximately $1.7 million in long term debt, which was assumed in the
transaction. A holdback of 10% of the purchase proceeds to be paid to
the seller were withheld for a six-month period to allow for potential
contingencies. PDA's total assets of approximately $5.5 million on the
acquisition date includes a 13% equity interest in Rosales in which the
Company owns a 35% equity investment, which was acquired in 2014. Upon
completion of the acquisition, the Company will own 48% of Rosales and
PDA's 10% stockholder will own the remaining 52% of Rosales. PDA had
approximately $450,000 of net income on approximately $1.9 million in
sales for the year ended December 31, 2016. PDA's results of operations
will be included in Limoneira's consolidated results of operations from
the date of acquisition. Limoneira expects annual production to increase
from these orchards because the majority of the trees in the orchard are
young and will increase production as they mature.
PDA is located in a coastal region near La Serena, Chile, which is a
major citrus and avocado growing area of the country. Rosales packs and
sells all of PDA's citrus production. Rosales, which primarily packs and
sells citrus, partners with Limoneira's One World of Citrus™
marketing team to sell its produce in Chile and throughout the world.
Alex Teague, Senior Vice President, stated, "We are very excited about
our expansion in Chile. The majority of the orchards we acquired are
young and just beginning to enter into its prime production time period.
Our management team has a long-standing relationship with PDA, and we
are excited they are now part of the Limoneira team. Along with
expanding our participation in the growing global lemon business, this
enables Limoneira to provide citrus on a year round basis to our
customers around the world and evaluate future potential investment
opportunities in Chile's vast, productive agricultural properties."
Harold Edwards, President and Chief Executive Officer, added, "With its
favorable climate for citrus, PDA's productive orchards and strong
relationship with Rosales was a perfect fit for our international
expansion plans. Our acquisition of PDA is consistent with our long-term
strategy to expand our agribusiness internationally as a global, year
round supplier of lemons complementing our One World Of Citrus™
strategy. We expect the acquisition to be immediately accretive and will
benefit our business by owning more productive acreage and increasing
our ownership in Rosales."
About Limoneira Company
Limoneira Company, a 124-year-old international agribusiness
headquartered in Santa Paula, California, has grown to become one of the
premier integrated agribusinesses in the world. Limoneira (pronounced lē
mon΄âra) is a dedicated sustainability company with approximately 11,000
acres of rich agricultural lands, real estate properties, and water
rights in California and Arizona. The Company is a leading producer of
lemons, avocados, oranges, specialty citrus and other crops that are
enjoyed throughout the world. For more about Limoneira Company, visit www.limoneira.com.
Forward-Looking Statements
This press release contains forward-looking statements, including
earnings guidance for fiscal year 2016, within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These
forward-looking statements are based on Limoneira's current expectations
about future events and can be identified by terms such as "expect,"
"may," "anticipate," "intend," "should be," "will be," "is likely to,"
"strive to," and similar expressions referring to future periods.
Limoneira believes the expectations reflected in the forward-looking
statements are reasonable but cannot guarantee future results, level of
activity, performance or achievements. Actual results may differ
materially from those expressed or implied in the forward-looking
statements. Therefore, Limoneira cautions you against relying on
any of these forward-looking statements. Factors which may cause future
outcomes to differ materially from those foreseen in forward-looking
statements include, but are not limited to: changes in laws,
regulations, rules, quotas, tariffs and import laws; weather conditions
that affect production, transportation, storage, import and export of
fresh product; increased pressure from crop disease, insects and other
pests; disruption of water supplies or changes in water allocations;
pricing and supply of raw materials and products; market responses to
industry volume pressures; pricing and supply of energy; changes in
interest and currency exchange rates; availability of financing for land
development activities; political changes and economic crises;
international conflict; acts of terrorism; labor disruptions, strikes or
work stoppages; loss of important intellectual property rights;
inability to pay debt obligations; inability to engage in certain
transactions due to restrictive covenants in debt instruments;
government restrictions on land use; and market and pricing risks due to
concentrated ownership of stock. Other risks and uncertainties
include those that are described in Limoneira's SEC filings which are
available on the SEC's website at http://www.sec.gov.
Limoneira undertakes no obligation to subsequently update or revise
the forward-looking statements made in this press release, except as
required by law.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170227005419/en/
Investor Contact:
ICR
John Mills
Partner
646-277-1254
Source: Limoneira Company
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