- Dramatically Expands Sourcing, Packing and Global Marketing of
Lemons -
- Expected to Add 2.0 to 2.5 Million Lemon Cartons
in Fiscal 2019 -
- Expected to Generate Earnings Per Share
of $0.08-$0.10 in Fiscal 2019 -
SANTA PAULA, Calif.--(BUSINESS WIRE)--Jul. 26, 2018--
Limoneira Company (the “Company” or “Limoneira”) (Nasdaq: LMNR), a
diversified citrus packing, sales and marketing company with related
agribusiness activities and real estate development operations,
announced today that it has closed an asset purchase agreement to
acquire a packinghouse and related assets of Oxnard Lemon Associates,
Ltd. in Oxnard, California.
Oxnard Lemon Associates, Ltd. dba Oxnard Lemon Company (“Oxnard Lemon”)
is one of the leading full-line lemon packing companies in the United
States, including a line of organic and specialty citrus. The Oxnard
Lemon facility consists of a packinghouse and related equipment on 13
acres strategically located less than a mile from the Port of Hueneme
and with packing capacity of 4,000,000 cartons per year. This
transaction increases Limoneira’s share of packing and marketing third
party grower fruit from California facilities. The Company’s greater
volume, along with its expanding international operations, continues to
support the Company’s One World of Citrus™ program servicing an
increasing global marketplace. The adjacency to Limoneira’s headquarters
in Santa Paula, California creates additional packing efficiencies for
the combined enterprise with its two focused locations, while also
nearly doubling its storage capacity, which significantly curtails
future capital needs in that regard.
The newly created Oxnard Division of Limoneira will be included in
Limoneira’s consolidated results of operations from the date of final
closing beginning November 1, 2018. However, in order to allow Oxnard
Lemon to satisfy its pre-existing sourcing obligations, Limoneira has
engaged in a sale-leaseback agreement with Oxnard Lemon for a period
extending through October 2018. Beginning November 1, 2018, Limoneira
will realize the full financial benefit of Oxnard Lemon’s operations and
as a result, the transaction will have a nominal impact on fiscal 2018
operating results. For fiscal 2019, the Company expects the acquisition
to add $0.08 - $0.10 in earnings per diluted share, reflecting the
addition of 2.0 to 2.5 million cartons of additional fruit from Oxnard
Lemon’s operations.
Harold Edwards, President and Chief Executive Officer, stated, "We are
very excited about Oxnard Lemon joining the Limoneira family. Oxnard
Lemon has built a sterling reputation within the lemon industry and is
at the forefront of the organic and specialty citrus movement in
California. By combining our two facilities under the Limoneira
platform, we will create significant efficiencies that will position us
for continued sustainable long-term growth while delivering on our
promise of superior grower returns and customer service through our One
World of Citrus™ initiative. Our pipeline of potential acquisitions
remains robust and we will continue to seek value-enhancing transactions
for our shareholders.”
Amy Fukutomi, Principal Partner in Oxnard Lemon, added, “This exciting
milestone will allow growers to leverage Limoneira’s growing global
footprint in the fresh citrus industry and maximize their returns. We
look forward to a bright future together.”
About Limoneira Company
Limoneira Company, a 125-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 14,500 acres of rich
agricultural lands, real estate properties, and water rights
in California, Arizona and Chile. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180726005842/en/
Source: Limoneira Company
Investors:
ICR
John Mills, 646-277-1254
Partner
