Limoneira, a diversified citrus packing, sales and marketing company with related agribusiness activities and real estate development operations, announced 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.”
For more information;
John Mills