- Transaction In-Line with Long-Term Strategy of Divesting Valuable
Non-Core Assets and Reinvesting Proceeds in Agribusiness and Reducing
Borrowings -
- Company has entered into lemon packing, marketing, and sales
agreement with purchaser -
- Proceeds from the Sale will be used to Reduce Borrowings and Expand
Agribusiness -
SANTA PAULA, Calif.--(BUSINESS WIRE)--
Limoneira Company (NASDAQ:LMNR), a leading agribusiness with prime
agricultural land and operations, real estate and water rights
throughout California, has closed on the sale of its Rancho
Refugio/Caldwell Ranch property. The Company had been leasing and
farming the property until December 2010, at which time the Company
entered into an agreement to exercise its purchase option contained in
the lease and acquire the property for a purchase price of approximately
$6.5 million and concurrently sell the property for $10 million. The
purchase and the sale closed on February 3, 2011. The Company realized a
net gain of approximately $1.3 million and net cash of $2.8 million
after selling and other closing costs.
The Rancho Refugio/Caldwell Ranch property consists of approximately 450
acres located north of Santa Barbara on the California Coast. This
property has approximately 210 acres of agricultural plantings
consisting of approximately 90 acres of lemons and 120 acres of
avocados. The Company has entered into a lemon packing, marketing, and
sales agreement with the purchaser, for which the Company will earn
certain fees. In addition, the Company provides these services for a
contiguous ranch also owned by the buyer. These agreements will
partially offset the reduction in operating income generated from the
lemon and avocado revenue associated with the Caldwell Ranch property.
Harold Edwards, President and Chief Executive Officer, stated, "We are
pleased with the terms of our sale of the Caldwell Ranch property, which
underscores the continued execution on our strategy to monetize our
non-strategic real estate assets. Importantly, through our lemon
packing, marketing, and sales agreements with the new property owner, we
will be able to continue to generate revenue from the orchard. We intend
to use the net cash realized from this transaction, along with cash flow
from our core agribusiness operations, to repay debt in coming quarters.
We look forward to capitalizing on additional opportunities with our
real estate properties to support our expanding agribusiness throughout
2011."
About Limoneira Company
Limoneira Company, a 117-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 7,300
acres of rich agricultural lands, real estate properties and water
rights throughout California. The Company is a leading producer of
lemons, avocados, oranges, and other specialty 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 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; increased costs from becoming a public company; 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
Senior Managing
Director
310-954-1105
Source: Limoneira Company
News Provided by Acquire Media
