Joint venture to transform green waste and food waste into agricultural benefits while generating expected substantial EBITDA for both partners
Limoneira Company (the "Company" or "Limoneira") (NASDAQ:LMNR), a diversified citrus growing, packing, selling and marketing company with related agribusiness activities and real estate development operations, today announced entering into a letter of intent to form a 50%/50% joint venture with Agromin Corporation, the largest organics waste recycler in California, to significantly expand their successful organic waste recycling program. The joint venture plans to expand from the existing 15-acre green waste composting facility at Limoneira Ranch in Santa Paula into a 70-acre, commercial-scale composting facility capable of processing both green waste and food waste.
Upon completion, the expanded facility is projected to generate substantial financial returns for both partners, with first-year EBITDA contribution projected at approximately $5.0 million to be shared equally between Limoneira and Agromin. Annual EBITDA contribution is expected to grow to $9.0 million over the next ten years, maintaining the same 50%/50% profit-sharing arrangement. The Company is planning to lease the 70-acre site to the joint venture for approximately $0.6 million annually, strengthening Limoneira's rental operations business division.