Limoneira Partners With Argentinian Growers, FGF Trapani
SANTA PAULA, CA - Bigger is better for Limoneira Company, as it announced today that it has entered into an agreement with FGF Trapani, a family-owned citrus company in Argentina. The Argentinian company is multi-generational and operates over 3,200 acres of oranges and lemons in the provinces of Salta, Jujuy, and Tucumán, as well as a juice processing facility in the Province of Tucumán.
"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,” said Senior Vice President Alex Teague, in a press release. “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."
The agreement is expected to close around the middle of March 2019. Part of the agreement includes Limoneira creating a subsidiary in Argentina, under the name Limoneira Argentina S.A.U. The company will be acquiring 25 percent of the parcels of Finca Santa Clara upfront, an area that has around 1,200 acres of planted lemons. An additional 25 percent will be acquired over a three-year period. The agreement will be operating under the name ‘Trapani Fresh,’ and Limoneira will be the managing partner, responsible for all fresh fruit sales and holding a 51 percent interest with FGF holding a 49 percent interest. The juice processing facilities and operations will be owned and controlled entirely by FGF.
"We are excited to add FGF’s rich supply of citrus to our global production and increase our competitive position,” commented Harold Edwards, President and Chief Executive Officer. “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.”
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