The deal makes Associated Citrus Packers a subsidiary of Santa Paula, Calif.-based Limoneira.
Associated Citrus Packers has about 950 acres of lemons, 350 of other crops plus facilities and Colorado River access. Several senior managers will remain in management on the combined company, according to a news release.
“We continue to see a strong pipeline of additional acquisition opportunities and look forward to further expanding our business through acquisitions as well as organic growth in coming years,” Harold Edwards, Limoneira’s president and chief executive officer, said in the release.
Limoneira procured, packed and sold lemons for Associated Citrus Packers and some other Yuma-area growers in the 2012-2013 season. About 745,000 cartons of lemons were sold from September to February — the Arizona crop’s normal season — including 355,000 from Associated Citrus Packers.
In California, Limoneira has about 9,500 acres of growing lands among other assets.
The acquisition is final. The price was paid by issuing about 705,000 unregistered shares of Limoneira common stock valued at $16 million; $1 million in cash; and the repayment of $1.6 million in the new subsidiary’s long term debt.