-Expected to be Accretive for Fiscal 2019-
-Expands Company’s Lemon Holdings by 1,200 Acres-
-Further Enhances the Company’s One World of Citrus™ Initiative-
SANTA PAULA, Calif.--(BUSINESS WIRE)--Feb. 4, 2019--
Limoneira Company (the “Company” or “Limoneira”) (Nasdaq: LMNR), a
diversified citrus growing, packing, selling and marketing company with
related agribusiness activities and real estate development operations,
announced today that it has entered into an agreement with FGF Trapani
(“FGF”), a multi-generational, family owned citrus operation in
Argentina. Beginning in 1937 with Ignacio Trapani, Ricardo Trapani (3rd
generation) and his sons, Fabricio, Gabriel, and Franco (4th
generation) have grown FGF into an enterprise of over 3,200 acres of
lemons and oranges in the Provinces of Salta, Jujuy and Tucuman as well
as owning and operating a juice processing facility in the Province of
Tucuman.
As part of the agreement, Limoneira will create a subsidiary in
Argentina under the name Limoneira Argentina S.A.U. (“Limoneira
Argentina”) and will acquire 25% of the parcels of Finca Santa Clara,
approximately 1,200 acres of planted lemons, upfront with an additional
25% to be acquired over a three-year period. Limoneira Argentina and
FGF’s agreement will operate under the name Trapani Fresh, with
Limoneira Argentina as the managing partner and responsible for all
fresh fruit sales, holding a 51% interest and FGF holding a 49%
interest. The agreement is expected to close in the middle of March
2019. FGF Trapani will maintain 100% ownership and control of the juice
processing facilities and operations.
Alex Teague, Senior Vice President, stated, "It’s very exciting for us
to expand our global footprint into Argentina and thereby strengthen our
ability to become a 365-day, 24/7 global supplier of fresh citrus to our
valued customers around the world. This joint venture fits in nicely
with our One World of Citrus™ initiative and we are looking
forward to welcoming FGF’s family owned business to the Limoneira team.
This relationship will provide Limoneira with access to new markets and
distribution networks, increase production and technical capacity and
also reduce impact on operating results."
Harold Edwards, President and Chief Executive Officer, added, "We are
excited to add FGF’s rich supply of citrus to our global production and
increase our competitive position. Our two companies have a long history
with a combined 205 years in the business and this joint venture is
bringing together years of industry knowledge and expertise. We expect
the deal to be accretive in fiscal year 2019 and we will provide more
information on our first quarter call in early March.”
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, including
guidance for fiscal year 2018 and 2019, 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'sSEC 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/20190204005399/en/
Source: Limoneira Company
Investors:
John Mills
Managing Partner
ICR
646-277-1254
