Limoneira completes citrus orchard acquisition

Limoneira Company has announced that it completed the previously announced acquisition of 757 acres of lemon, orange and specialty citrus orchards in San Joaquin Valley. The purchase price was approximately $15.1 million, and the acquisition closed on December 2, 2015. The orchards were acquired pursuant to purchase options contained in certain operating leases the Company has had since 2012 for approximately 1,000 acres of lemon, orange, specialty citrus and other crops, which the Company refers to as the Sheldon Ranch leases. The lease agreements included base rent of $500 per acre and contingent rent of 50% of the operating profit of the leased property as defined in the lease agreements. Total rent expense for fiscal year 2015 on the acquired property is estimated to be approximately $1.0 million and was approximately $1.4 million for fiscal year 2014.

Harold Edwards, President and Chief Executive Officer of Limoneira, stated, “We are pleased to complete the acquisition of the orchards that were part of the Sheldon Ranch leases. We have recently acquired approximately 900 acres of land that was previously leased in the highly productive San Joaquin Valley, and this is expected to generate incremental operating results and cash flows resulting from the elimination of lease expense beginning in fiscal year 2016. Since going public in 2010, we have acquired approximately 3,300 acres of agricultural property totaling approximately $48.5 million. In addition, as we begin to realize cash flow from our recent real estate development agreements, we remain focused on capitalizing on strategic and accretive acquisition opportunities to further expand our global agribusiness.”

For more information visit www.limoneira.com.