Mission Produce, Inc. (NASDAQ: AVO) and Calavo Growers, Inc. (NASDAQ: CVGW) have entered into a definitive agreement under which Mission will acquire Calavo in a cash-and-stock transaction.
The transaction values Calavo at a total enterprise value of about $430 million and represents a premium of about 26 percent to Calavo’s 30-trading day volume weighted average price of $21.41.
“This acquisition marks an important milestone for Mission and for our industry,” said Steve Barnard, co-founder and CEO 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.”
Under the terms of the agreement, Calavo stockholders will receive $27.00 per share, comprised of $14.85 in cash and 0.9790 shares of Mission for each share of Calavo. Upon close, Mission shareholders are expected to own approximately 80.3 percent of the combined company and Calavo shareholders approximately 19.7 percent.
The transaction is expected to deliver $25 million of annualized cost synergies within 18 months post-close, with meaningful upside potential.
John Pawlowski, president and COO of Mission and CEO-designate, said the acquisition will expand Mission’s premium avocado position in North America.
“With this acquisition, we strive to expand our premium avocado position in North America and create a leading global fresh produce platform, which we believe will be well-positioned to capture the increasing demand for fresh, healthy, and convenient foods,” Pawlowski said.
Calavo’s offerings include fresh avocados sourced from California, Mexico, Peru and Colombia, as well as tomatoes, Hawaiian papayas and a variety of ready-to-eat products such as guacamole and salsas.
The acquisition is expected to expand Mission’s foothold in Mexico and California. Following closing, Calavo’s two packinghouses in Michoacán and Jalisco will expand Mission’s network to four packinghouses in Mexico, increasing access to high-quality fruit from the No. 1 source of avocados to the U.S.
The transaction represents Mission’s entry into the high-growth prepared food segment, complementing its existing avocado business with Calavo’s value-added, avocado-based prepared foods.
“Over the past century, the Calavo team has built this company into a global leader in the sourcing and distribution of avocados, tomatoes, papayas, and the processing of guacamole and other prepared foods,” said B. John Lindeman, president and CEO of Calavo. “We believe combining with Mission represents a compelling next chapter that will enable our combined business to unlock new growth and expand the impact of our trusted Calavo brand.”
The boards of directors of both companies have approved the transaction, which is expected to close by the end of August 2026, subject to required regulatory approvals, shareholder approvals from both companies and other customary closing conditions.
Upon close, Pawlowski is expected to serve as CEO of the combined company. Barnard, who will become executive chairman of Mission effective as of the close of the April 2026 annual meeting of shareholders, is expected to hold the same title for the combined company. The company will be headquartered at Mission’s corporate offices in Oxnard, California.
Oxnard-based Mission Produce is a global leader in the worldwide fresh produce business, delivering fresh Hass avocados and mangos to retail, wholesale and foodservice customers in more than 25 countries. The company owns five packing facilities across the U.S., Mexico, Peru and Guatemala.
Santa Paula, California-based Calavo Growers was founded in 1924 and serves retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers worldwide.
Related: Pawlowski To Succeed Barnard As Mission Produce CEO