U.S.-based citrus company Limoneira has completed the joint venture and land acquisition with family-owned Argentine citrus operation FGF Trapani (FGF).
FGF has over 3,200 acres of lemons and oranges in the Argentina Provinces of Salta, Jujuy and Tucuman and owns and operates a juice processing facility in the Province of Tucuman.
As part of the agreement, Limoneira has created a subsidiary in Argentina under the name Limoneira Argentina S.A.U. and acquired 25% of the parcels of Finca Santa Clara. Its current share represents around 1,200 acres of planted lemons, and it will acquire an additional 25% a three-year period.
Limoneira Argentina and FGF’s joint venture will operate under the name Trapani Fresh, with Limoneira Argentina holding a 51% interest as the managing partner responsible for all fresh fruit sales and FGF holding a 49% interest.
FGF will maintain 100% ownership and control of its juice processing facilities and operations.
"This joint venture and land acquisition with FGF will be accretive in fiscal 2019, expands our global footprint into Argentina and strengthens our position as a 365-day, 24/7 global supplier of fresh citrus to our valued customers around the world," said Alex Teague, senior vice president of Limoneira.
"This joint venture is a perfect fit with our One World of Citrus™ initiative and we are excited to welcome FGF’s family owned business to the Limoneira team."