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Friday, Jun 2, 2023

Limoneira Stock Offering to Fund Chilean Acquisition

Limoneira Co. is offering around $60 million of its common stock to help fund the acquisition of a ranch in Chile, the Santa Paula agribusiness company announced Wednesday. Limoneira has entered into a $13 million agreement to purchase the more than 3,300-acre citrus ranch and its related assets from Chile-based Fruticola San Pablo S.A. The company plans to invest an additional $2.8 million into the ranch over the next two years to plant new lemon and orange trees as well as to enhance its water infrastructure. To finance the deal, the company is offering over 2.7 million shares of its common stock at $22 a share. After underwriting discounts, net proceeds from the offering are expected to be around $56 million. The offering is expected to close June 25. In addition to buying the ranch, Limoneira plans to use the new capital to fund future acquisitions and other corporate operations. “We have a very strong pipeline of potential acquisitions around the world, including the United States, and believe we are very well positioned to capitalize on this tremendous long-term growth opportunity,” said Chief Executive Harold Edwards in a statement. Shares of Limoneira fell $1.07, or around 4 percent, on Thursday to close at $25.63 on the Nasdaq.

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