Key Takeaways
- Mission Produce has entered into a definitive agreement to acquire Calavo Growers in a cash-and-stock deal valuing Calavo at approximately $430 million.
- The transaction strengthens Mission’s vertically integrated avocado platform and expands its footprint in prepared foods and complementary produce categories.
- Calavo shareholders will receive $27.00 per share, representing a premium of about 26% over the recent average trading price.
- The combined company is expected to achieve $25 million in annualized cost synergies within 18 months of closing.
- The transaction is expected to close by the end of August 2026, subject to regulatory and shareholder approvals.
Mission Produce Announces Agreement to Acquire Calavo Growers
Mission Produce, Inc. (NASDAQ: AVO), a global supplier of fresh avocados, has announced a definitive agreement to acquire Calavo Growers, Inc. (NASDAQ: CVGW), a long-standing produce and prepared foods company, in a cash-and-stock transaction. The deal is intended to create a more diversified and scaled fresh produce platform in North America with expanded global reach.
“This acquisition marks an important milestone for Mission and for our industry,” said Steve Barnard, Co-Founder and Chief Executive Officer of Mission. “By bolstering Mission’s vertically integrated platform and trusted global distribution network with Calavo’s complementary sourcing, prepared foods capabilities, and deep customer relationships, we intend to build a stronger, more diversified company positioned for sustainable growth.”
Strategic Fit Across Fresh Produce and Prepared Foods
Founded more than 100 years ago, Calavo has developed a global sourcing network for avocados, tomatoes, and papayas, alongside a growing portfolio of value-added products such as guacamole and salsas. Mission, meanwhile, operates a fully integrated avocado business that includes growing, packing, ripening, logistics, and regional distribution.
The combination is expected to expand Mission’s presence in Mexico and California, key avocado sourcing regions. Following the transaction, Calavo’s packinghouses in Michoacán and Jalisco will increase Mission’s total number of packing facilities in Mexico to four, strengthening year-round supply consistency.
“With this acquisition, we strive to expand our premium avocado position in North America and create a leading global fresh produce platform,” said John Pawlowski, President and Chief Operating Officer and Chief Executive Officer-designate of Mission.
Transaction Structure and Financial Highlights
Under the terms of the agreement, Calavo shareholders will receive $14.85 in cash and 0.9790 shares of Mission stock for each Calavo share, for a total implied value of $27.00 per share. Upon closing, Mission shareholders are expected to own approximately 80.3% of the combined company, with Calavo shareholders owning about 19.7%.
The transaction is expected to deliver approximately $25 million in annualized cost synergies within 18 months, supporting EBITDA growth and cash flow generation.
Governance and Next Steps For Both Mission Produce & Calavo Growers
Following the close, John Pawlowski is expected to serve as Chief Executive Officer of the combined company, while Steve Barnard will assume the role of Executive Chairman. The combined company will be headquartered in Oxnard, California.
“Combining with Mission represents a compelling next chapter for Calavo,” said B. John Lindeman, President and Chief Executive Officer of Calavo. “By joining a larger global platform, we will be better positioned to invest, innovate, and serve the market at scale.”
The transaction has been approved by both companies’ boards of directors and is expected to close by the end of August 2026, subject to customary regulatory and shareholder approvals.
