Mission Produce Buying Avocado Rival Calavo Growers for $430 Million

Mission Produce Inc. is paying the equivalent of $430 million to buy rival avocado distributor and processor Calavo Growers Inc. – which also brings the acquirer into such prepared foods as guacamole and salsas.

“We have great respect for Calavo’s heritage as a trusted name in fresh and prepared foods and are proud to welcome their organization into the Mission network,” said John Pawlowski, Mission’s president/chief operating officer and CEO-designate.

Calavo’s offerings include fresh avocados sourced from California, Mexico, Peru and Colombia; tomatoes; Hawaiian papayas; and a variety of ready-to-eat products such as guacamole and salsas. Its products are sold under the Calavo brand name, proprietary sub-brands and private labels and store brands.

Mission is a global supplier of avocados with fully integrated operations. Its announcement noted the deal will “accelerate Mission’s business model diversification by expanding its presence in the high-growth prepared foods segment following closing.”

Both companies are publicly held and based in California. Under the terms of the agreement, Calavo stockholders will receive the equivalent of $27 per share, composed of $14.85 in cash and 0.979 shares of Mission stock, meaning current Mission shareholders will own approximately 80.3% of the combined company and Calavo shareholders will hold approximately 19.7%.