SANTA PAULA, CA - A significant sale recently occurred as Limoneira Company announced it had closed the sale of its Oxnard Lemon Packing Facility (OLA) in Ventura County, California. The citrus and avocado provider completed the sale to Ventura County Railway Company for $20 million in cash proceeds.
“The successful closing of the sale of the Oxnard facility is the second transaction this month that highlights our strategy to monetize over $150 million of certain non-core assets as we streamline operations, expect to improve consistency of earnings, and increase EBITDA and dividend per share,” Harold Edwards, President and Chief Executive Officer, stated. “Our updated strategic plan also includes expanding One World of Citrus and increasing our avocado plantings.”
Limoneira expects to record an approximate gain of $900,000 on this transaction, which is to be recognized in its fiscal fourth quarter 2022 ending October 31, 2022. According to the release, Limoneira plans to utilize the $20 million proceeds to reduce the company’s debt.
“We have over 15,400 acres of rich agricultural lands, real estate properties, and water rights in California, Arizona, Chile, and Argentina, with fair-market-values of over $600 million in today’s market, yet a book value on Limoneira’s balance sheet of $220 million,” continued Edwards. “This is primarily because many of these assets were acquired years ago at a low-cost basis. Selective monetization of certain assets in Limoneira’s portfolio creates a tremendous value opportunity for our stockholders.”
This transaction is a continuation of its updated asset-light strategic plan to increase stockholder value, and the company will lease its wash and storage space from a purchaser at no additional net cost.
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