California-based agribusiness, Limoneira, has closed the $20 million sale of its Oxnard packing facility to Ventura County Railway Company.

The citrus fruits company said that the transaction is a continuation of its “asset-light strategic plan to increase stockholder value through selecive monetisation of certain assets”.

Limoneira plans to use the $20 million proceeds from the sale to reduce the company’s debt.

Harold Edwards, president and CEO of Limoneira, stated: “The successful closing of the sale of the Oxnard facility is the second transaction this month that highlights our strategy to monetise over $150 million of certain non-core assets as we streamline operations, expect to improve consistency of earnings and increase EBITDA and dividend per share”.

Edwards continued: “Our updated strategic plan also includes expanding ‘One World of Citrus’ and increasing our avocado plantings. We have over 15,400 acres of rich agricultural lands, real estate properties and water rights in California, Arizona, Chile and Argentina with fair-market values of over $600 million in today’s market, yet a book value on Limoneira’s balance sheet of $220 million.

“This is primarily because many of these assets were acquired years ago at a low-cost basis. Selective monetisation of certain assets in Limoneira’s portfolio creates a tremendous value opportunity for our stockholders.”