Calavo, Limoneira form alliance for growth
Jun 7, 2005 9:48 AM, from staff and wire reports
Calavo Growers Inc and Limoneira Co have announced equity cross-investments in each otherís operations, creating an agribusiness alliance that unites a leading packer and marketer of avocados with one of its industryís largest growers. The transaction involves cash, stock, and other considerations, but terms were not further disclosed.
Under the agreement, Calavo, marketer of avocados and other perishable food products, acquires about 15% ownership interest in Limoneira and becomes the companyís single-largest shareholder. Limoneiraís land holdings include 7,000 California acres, mainly in Ventura County. The 112-year-old company becomes Calavoís second-largest shareholder through its approximately 7% newly obtained equity stake.
Calavo packs, markets, and distributes an estimated seven to 10 million pounds annually of avocados grown by Limoneira, which also produces lemons, oranges, and other specialty crops. Calavo recently relocated its corporate headquarters from Santa Ana CA to leased office space on the Limoneira ranch in Santa Paula CA.
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