Acquisition Consists of 1,300 Acres of Agricultural Property and
Expected to be Accretive to Earnings in Fiscal Years 2013 and 2014
SANTA PAULA, Calif.--(BUSINESS WIRE)--
Limoneira Company (NASDAQ: LMNR), a leading agribusiness with prime
agricultural land and operations, real estate and water rights in
California, announced today that it has completed the acquisition of
Associated Citrus Packers, Inc. ("ACP"), a privately owned Arizona
corporation for approximately $18.6 million. The purchase price was paid
with the issuance of approximately 705,000 unregistered shares of
Limoneira common stock with a value of $16.0 million, $1.0 million in
cash and the repayment of $1.6 million in ACP's long term debt. ACP will
be a wholly owned subsidiary of Limoneira, and several members of ACP's
senior management will remain an important part of the management of the
combined organization. ACP owns approximately 1,300 acres of property
located in Yuma, Arizona, comprised of approximately 950 acres of
productive lemon orchards, 350 acres of other crops and facilities and
access to the Colorado River for crop irrigation.
The Yuma, Arizona lemon crop typically harvests and sells beginning
September and may continue through February. Limoneira procured, packed
and sold ACP's lemons and the lemons of certain other Yuma area lemon
growers during the 2012 / 2013 season. A total of 745,000 cartons of
lemons were sold during the period September 2012 to February 2013,
including 355,000 cartons harvested by ACP. A similar volume of lemons
is anticipated to be sold during the 2013 / 2014 season. The acquisition
of ACP is expected to generate additional agribusiness operating profit
for Limoneira during the 4th quarter of fiscal year 2013 and
first quarter of fiscal year 2014 versus last year due to larger profit
margins on lemons grown on Limoneira orchards compared to lemons that
are procured from third party growers.
"We are very excited to bring Associated Citrus Packers into the
Limoneira family," said Alex Teague, Senior Vice President of Limoneira.
"The high quality of the fruit that ACP added to our year round supply
chain has been instrumental to our customers and packing operations
growing success. The ability to supply our customers on a year round
basis domestically and abroad is vital in today's marketplace. We are
confident that this fruit adds to not only our bottom line, but that of
our customers as well."
Harold Edwards, the Company's President and Chief Executive Officer,
added, "This acquisition is in-line with Limoneira's long-term growth
strategy to expand our portfolio of quality citrus acreage. We are very
pleased that several members of Associated Citrus Packers will be
joining the Limoneira team following the acquisition, and we are
confident that ACP will be an important contributor to our top and
bottom line growth. We continue to see a strong pipeline of additional
acquisition opportunities and look forward to further expanding our
business through acquisitions as well as organic growth in coming years.
We expect this acquisition to be accretive to our earnings in fiscal
years 2013 and 2014."
Mark Spencer, former Chief Executive Officer of ACP, stated, "Since we
entered into the agreement with Limoneira last year to pack and market
our lemons, we have been extremely pleased with their operational
expertise. Their strong reputation in the marketplace is well deserved
and highlighted by their dedication to food safety and sustainability.
We are excited to join their company and continue a successful
relationship."
About Limoneira Company
Limoneira Company, a 120-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 9,500
acres of rich agricultural lands, real estate properties and water
rights in California. 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 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.
Investor Contact:
ICR
John Mills, 310-954-1105
Senior
Managing Director
Source: Limoneira Company
News Provided by Acquire Media
