Proceeds of all-cash sale have been earmarked for debt reduction and avocado acreage expansion
Windfall Investors, a wholly owned subsidiary of California-based lemon and avocado supplier Limoneira, has agreed to sell Windfall Farms, its 724-acre vineyard property in Paso Robles, to a private buyer for US$15mn.
The all-cash deal is expected to be completed on 14 September, subject to closing conditions, and follows a public auction conducted earlier this month by Concierge Auctions, in cooperation with Sotheby’s International Realty.
The proposed sale is part of Limoneira’s ongoing strategy to sell non-strategic assets, strengthen its balance sheet, and reduce debt, it confirmed.
WIth the proceeds, it said, it plans to redeploy capital into “higher-return opportunities” across its core agribusiness and real estate platforms.
Net proceeds from this particular sale are expected to be used to reduce outstanding debt and fund acreage expansion in avocados, among other projects.
“The sale of Windfall Farms is part of our stated goal of selling non-strategic assets in order to enhance shareholder value,” said Harold Edwards, president and chief executive officer of Limoneira Company.
“We are pleased with the outcome of the auction process and look forward to using the proceeds to strengthen our balance sheet, reduce debt and support strategic growth initiatives.”
