Calavo Growers Inc and Limoneira Co have announced equity cross-investments in each other's operations, creating an agribusiness alliance that unites a leading packer and marketer of avocados with one of its industry's 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 company's single-largest shareholder. Limoneira's land holdings include 7,000 California agriculture acres, mainly in Ventura County. The 112-year-old company becomes Calavo's 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.