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Limoneira acquires 760 acres of agriculture property for $875M in cash

Limoneira announced that it has completed the acquisition of approximately 760 acres of agricultural property in the town of Porterville in Tulare county, California for $8.75M in cash. This property consists of approximately 400 acres of productive lemon orchards and 360 acres primarily utilized for cattle grazing. The acquisition includes water assets and agricultural equipment and supplies. Limoneira expects production of approximately 200K cartons of lemons for FY14 and expects to produce in excess of 100K additional cartons of lemons in future years after certain orchard redevelopment on the property. Limoneira expects to achieve annual production of approximately 300K to 350K cartons subsequent to orchard redevelopment. The acquisition is expected to generate additional agribusiness operating profit for Limoneira during 1Q14 and 2Q14 and be accretive to FY14 results.