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Mission Produce® Announces Agreement to Acquire Calavo Growers, Expanding North American Avocado Business and Diversifying Portfolio Across Fresh Produce

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Transaction seeks to enhance Mission's position in the North American avocado category with expanded...

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Mission Produce to acquire Calavo, enhancing North American avocado supply. Transaction expected to create $25 million in annual cost synergies post-close. Mission's entry into prepared foods market complements existing avocado business. Acquisition boosts Mission's scale and diversification in fresh produce segments. Expected closure by August 2026, pending regulatory approvals.

Sentiment Rationale

The acquisition significantly strengthens Mission's market position and diversification, resembling past successful M&A in the food sector like Kraft-Heinz. These moves have historically led to increased shareholder value.

Trading Thesis

The integration of Calavo will enhance Mission's capabilities for years, similar to how similar acquisitions in the sector have redefined market shares and investor confidence over time.

Market-Moving

  • Mission Produce to acquire Calavo, enhancing North American avocado supply.
  • Transaction expected to create $25 million in annual cost synergies post-close.
  • Mission's entry into prepared foods market complements existing avocado business.

Key Facts

  • Mission Produce to acquire Calavo, enhancing North American avocado supply.
  • Transaction expected to create $25 million in annual cost synergies post-close.
  • Mission's entry into prepared foods market complements existing avocado business.
  • Acquisition boosts Mission's scale and diversification in fresh produce segments.
  • Expected closure by August 2026, pending regulatory approvals.

Companies Mentioned

  • CVGW (CVGW)
  • SJM (SJM)
  • KHC (KHC)

M&A

The strategic acquisition is pivotal for Mission, promising substantial growth and market share increase, likely impacting stock performance positively.

Mission Produce® Announces Acquisition of Calavo Growers: A Strategic Move to Enhance North American Avocado Business

Oxnard, CA and Santa Paula, CA, January 14, 2026 – Mission Produce, Inc. (NASDAQ: AVO), a leading global provider of fresh avocados, has reached a definitive agreement to acquire Calavo Growers, Inc. (NASDAQ: CVGW), a prominent name in the fresh produce industry. This strategic transaction aims to bolster Mission's position in the North American avocado market with an expanded supply chain across Mexico and California while diversifying its product portfolio.

Transaction Overview and Goals

The acquisition involves a cash-and-stock agreement where Calavo shareholders will receive $27.00 per share, consisting of $14.85 in cash and 0.9790 shares of Mission Produce. This transaction is anticipated to create significant value for both Mission and Calavo shareholders with cost synergies projected at approximately $25 million within 18 months post-close.

Steve Barnard, Co-Founder and CEO of Mission, remarked, “This acquisition marks an important milestone for Mission and for our industry. By bolstering Mission’s vertically integrated platform and trusted global distribution network with Calavo’s complementary capabilities, we intend to build a stronger, more diversified company positioned for sustainable growth.”

Strategic Benefits of the Acquisition

The merger is expected to enhance Mission's existing operations by:

  • Expanding sourcing capabilities across Mexico and California.
  • Diversifying the product offerings to include prepared food segments, particularly avocado-based products like guacamole.
  • Improving supply reliability and sourcing security through an enhanced grower network.
  • Creating a more consistent year-round supply of avocados and other fresh produce.

John Pawlowski, President and COO of Mission, stated, “With this acquisition, we will be better positioned to capture the increasing demand for fresh, healthy, and convenient foods.”

About Calavo and Its Contributions

Calavo Growers, founded over a century ago, has established itself as a trusted name in the fresh produce sector. Its portfolio includes:

  • Fresh avocados from California, Mexico, Peru, and Colombia.
  • Tomatoes and Hawaiian papayas.
  • Value-added prepared foods like guacamole and salsas.

B. John Lindeman, President and CEO of Calavo, expressed confidence in the merger, saying, “Combining with Mission represents a compelling next chapter that will unlock new growth opportunities and expand the impact of our trusted Calavo brand.”

Long-Term Impacts and Future Growth

The acquisition is expected to drive not only immediate synergies but also long-term growth for the combined entity. Mission Produce’s entry into the prepared foods sector will enhance its ability to meet evolving consumer demands for convenience and quality.

After the merger, Mission shareholders are projected to own approximately 80.3% of the combined company, while Calavo shareholders will own about 19.7%. The transaction values Calavo at an enterprise value of around $430 million, reflecting a premium of approximately 26% over its recent trading averages.

Looking Ahead

Both companies' Boards of Directors have approved the transaction, which is anticipated to close by the end of August 2026, pending the necessary regulatory approvals and shareholder consent.

This acquisition aligns with Mission’s strategic vision to enhance its offerings and grow its market share in the promising avocado and prepared foods sectors, ultimately delivering greater value to customers and stakeholders alike.

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