U.S.-based citrus company Limoneira has completed its acquisition of Fruticola San Pablo S.A. in Chile’s northern Coquimbo region announced last month.
The La Serena ranch consists of 3,317 total acres on two parcels, including 247 acres producing lemons, 61 acres producing oranges, and the opportunity to immediately plant 120 acres for lemon production.
There is also the potential for around 500 acres of avocado production.
“We are extremely excited about expanding our citrus assets with the addition of the San Pablo ranch,” said president and CEO Harold Edwards.
“This acquisition creates additional scale for our Chilean operations and will improve our competitive position globally as a year round supplier of fresh citrus.
“We continue to work through our pipeline of other potential acquisitions which furthers our One World of Citrus initiative and addresses what we believe is a tremendous long-term growth opportunity.”
The company previously said it expects to invest an additional US$2.8 million in fiscal 2018 and 2019 for new citrus plantings and enhanced water infrastructure to expand citrus production to 650,000 cartons of lemons and 85,000 cartons of oranges annually upon maturity of the ranch at peak production.
San Pablo’s proximity to Limoneira’s existing Pan de Azucar (PDA) ranch in a coastal region near La Serena, Chile, is advantageous given PDA’s ownership in the Rosales packing business.
By adding San Pablo to the PDA assets and Rosales packing business, Limoneira says it will improve efficiencies and overall Chilean margins. Rosales will pack and sell all of the company’s citrus production in the region under Limoneira’s marketing team.