Paramount Citrus, based in Delano, CA, and Rio Queen, based in Mission, TX, announced that they have entered into an agreement for Paramount Citrus to acquire the citrus assets of Rio Queen Citrus.
Paramount Citrus is already among the largest vertically integrated grower-packer-shippers of fresh citrus in North America, handling Mandarins, Navel oranges, Valencia oranges, lemons and limes. The acquisition of Rio Queen, following closelyon the heels of Paramount's recent acquisition of Healds Valley, positions the company as the preeminent supplier of Texas citrus, representing a majority share of the state's industry, primarily of the superior red grapefruit, according to a press release issued by Paramount.
"Rio Queen supplies a fantastic product and we're very pleased with the quality and consistency," David Krause, president of Paramount Citrus, said in the press release. "We believe Paramount is well positioned with its marketing activities to increase the demand for Texas grapefruit to a whole new level."
"We're excited about what this transaction will mean for both Rio Queen and Paramount," Mike Martin, president of Rio Queen, added in the press release. "Paramount Citrus is the undisputed leader in the citrus industry, and this will allow Paramount Citrus to leverage their other products to create better results for Texas growers."
Mr. Martin and his father, Ken, who serves as the company chairman, will remain involved in the operation for now with no changes until the current season comes to a close. At the end of the current season, Paramount Citrus intends to merge Healds Valley and Rio Queen into Paramount Citrus to create efficiencies for customers and growers alike.
"We welcome Rio Queen to the Paramount family with open arms," Mr. Krause added in the press release. "We are excited about the future of Paramount Citrus' operations in Texas, and Rio Queen will play an essential role in shaping it."
The acquisition is scheduled to close at the end of the month.