Represents Limoneira's First International Business Investment
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 made an investment in "Rosales S.A," a citrus packing, marketing
and sales operation in La Serena, Chile.
With its location in a coastal region of northern Chile, La Serena is a
major citrus and avocado growing area of the country. Rosales, which
primarily packs and sells lemons, currently sells its produce into
Asian, European, and Chilean markets. Going forward, Limoneira will
handle Rosales' lemon sales to Asian markets. Through its wholly owned
Chilean subsidiary, Limoneira Chile SpA, Limoneira invested $1.75
million for a 35% interest in the business. Limoneira will earn equity
income from its investment as well as $0.50 per carton on lemon sales to
Asian markets, which combined is estimated at $200,000 to $300,000 per
year.
Alex Teague, Senior Vice President, stated, "We are excited about our
first international business investment. Our management team has a
long-standing relationship with Rosales, and we look forward to working
with them more closely following our investment. Along with expanding
our participation in the growing global lemon business, this investment
also enables Limoneira to better 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 lemons and other citrus, we have been looking for
the right opportunity to enter the Chilean agriculture market for some
time and are very pleased with our partnership with Rosales. Our
investment in Rosales is consistent with our long-term strategy to
expand our agribusiness internationally as a global, year round supplier
of lemons. Our business will benefit from our increased packing capacity
following our Rosales investment, as well as our recently announced
acquisition of Marlin packing house in Yuma, Arizona, and the expansion
of our packing facility in Santa Paula, which will be completed next
fiscal year. Our team also continues to evaluate strategic opportunities
to acquire additional agribusiness acreage in both domestic and
international markets."
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 10,000
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 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
Partner
Source: Limoneira Company
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