SANTA PAULA, CA – Limoneira Company has closed on the purchase of the packing house property and equipment of Marlin Ranching Company in Yuma, Arizona.
"We are excited about the acquisition of the Marlin packing assets, which is strategically located near our current farming operations in Yuma. This acquisition will immediately increase our volume and give us increased flexibility in the export markets. Importantly, this also gives us the ability to ship Arizona lemons to China. We expect to benefit from improved operating efficiencies from the new packing house, particularly during the first quarter of our fiscal year," said Alex Teague, Senior Vice President.
Limoneira will use the facilities to wash and pack lemons from the company’s orchards in Arizona as well as citrus that comes from other growers in the region. The company estimates that it will be able to process about 500,000 to 600,000 cartons of fresh lemons annually at this facility, according to a press release. This should generate approximately $400,000 to $500,000 per year in operating income.
Harold Edwards, President and Chief Executive Officer, added, "The acquisition of Marlin packing operations is in-line with our long-term goal to expand our agribusiness. Along with the expansion of our primary packing facilities in Santa Paula, which is on track to be completed next fiscal year, this acquisition will significantly increase our packing capacity. In addition, we continue to evaluate opportunities to expand our total agribusiness acreage through strategic acquisitions."
The total purchase price was $1.4 million in cash and stock plus potential earn-out consideration of up to $400,000 in cash.
