Paramount Citrus to Acquire Assets from Grimmway Farms
Paramount Citrus and Grimmway Farms have entered into an agreement under which Paramount Citrus will acquire the citrus assets of the Central Valley-based Grimmway Farms.
As part of the acquisition, Grimmway Farms’ citrus packing equipment and outside grower program will transition to Paramount Citrus, which will add nearly 7,000 acres of navel and Valencia oranges and lemons grown in each of the major citrus producing regions in California, including the San Joaquin Valley, Ventura County and the California Desert.
“Grimmway Farms has developed a strong citrus grower program of farmers who, like our two companies, are committed to the highest quality growing practices,” said David Krause, president of Paramount Citrus. “This additional volume and share of market in crops we already represent will allow us to service our current and new customers in an even better way.”
“This acquisition provides for us a great opportunity to transition out of the citrus business while ensuring a solid future for the farmers in our outside grower program,” said Jeff Huckaby, EVP of Grimmway Farms, “and allows us to focus even more of our efforts into our core business, the consistently growing carrot and organic vegetable market.”
Paramount Citrus is already the largest vertically integrated grower, packer and shipper of fresh citrus – including mandarins, navel oranges, Valencia oranges, lemons, limes and Texas red grapefruit. With this acquisition, Paramount Citrus’ lemon program will now represent roughly 20 percent of total California lemon sales in the U.S.
Following the acquisition, members of the Grimmway Farms Grower Representative team will join the Paramount Citrus family in order to ensure a smooth transition for growers as they move from Grimmway Farms to Paramount Citrus.
The acquisition is scheduled to close at the end of the month.