Sandoval, Seoane & Cía and Arteaga Gorziglia & Cía advised on the deal
Limoneira Company (Nasdaq: LMNR), a diversified citrus packing, sales and marketing company with related agribusiness activities and real estate development operations, has entered into an agreement in the form of a binding memorandum of understanding to acquire a ranch and related assets of Fruticola San Pablo S.A in La Serena, Chile for $13 million subject to satisfactory due diligence to be further conducted by the Company.
The San Pablo ranch consists of 3,317 total acres on two parcels, including 247 acres producing lemons, 61 acres producing oranges, the opportunity to immediately plant 120 acres for lemon production, as well as the potential for approximately 500 acres of avocado production.
San Pablo’s results of operations will be included in Limoneira’s consolidated results of operations from the date of closing. Limoneira expects to invest an additional $2.8 million in fiscal 2018 and 2019 for new citrus plantings and enhanced water infrastructure to expand citrus production to 650,000 cartons of lemons and 85,000 cartons of oranges annually upon maturity of the ranch at peak production.
San Pablo’s proximity to Limoneira’s existing Pan de Azucar (PDA) ranch in a coastal region near La Serena, Chile, is advantageous given PDA’s ownership in the Rosales packing business. By adding San Pablo to the PDA assets and Rosales packing business, the Company will improve efficiencies and overall Chilean margins. Rosales will pack and sell all of the Company’s citrus production in the region under Limoneira’s One World of Citrus™ marketing team.
Sandoval, Seoane & Cía advised Limoneira Company with Rodrigo Seoane, Raúl Fuenzalida, Jorge Iglesias and Constanza Gajardo.
Arteaga Gorziglia & Cía. advised Sembrador Capital de Riesgo S.A. with Arnaldo Gorziglia C. (Picture) Andrés Ossandón S. and Gustavo Marambio C.
Law Firms: Arteaga Gorziglia & Cia;
Clients: Sembrador Capital de Riesgo S.A.;