Limoneira Co., a citrus growing and marketing company in Santa Paula, has entered into an agreement to buy orchards in Argentina.
Under the agreement, Limoneira will buy 25 percent of FGF Trapani, a family-owned citrus operation in Argentina, which equals about 1,200 acres of lemon trees. Limoneira will buy an additional 1,200 acres during the next three years.
A subsidiary named Limoneira Argentina will manage the operation, with the brand name Trapani Fresh. Limoneira will own 51 percent of the equity and FGF will control the remaining 49 percent.
FGF will maintain full ownership and control of the juice processing facilities and operations.
“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,” said Alex Teague, senior vice president at Limoneira.
Shares of Limoneira closed Monday up 43 cents, or 1.9 percent, to $22.63 on the Nasdaq.