Calavo ponders buyout as CEO retires
Santa Paula-based Calavo Growers announced that Lee Cole will retire as president and CEO on Dec. 8 — his second retirement in five years — as the company ponders an unsolicited proposal.
Announced Nov. 12, this was Cole’s second stint as CEO, as his first go-round was from 1999 until 2020, and he also served as a director of Calavo for 39 years, spending 28 years as chairman of the board. Alongside his retirement, Calavo also appointed his successor, hiring John Lindeman, a member of Calavo’s Board of Directors and former Calavo CFO, to succeed him on Dec. 8.
Lindeman most recently was CEO of Hydrofarm Holdings Group, a publicly-traded manufacturer and distributor of branded hydroponics equipment and supplies for controlled environment agriculture. Linedeman was the CFO and corporate security of Calavo from 2015 to 2020.
“I’m honored to return to Calavo and excited to lead this talented team,” said Lindeman. “With the dedication and expertise that define Calavo’s culture, we are well-positioned to deepen partnerships, drive growth, and create sustainable value for our shareholders.”
Cole, who was responsible for bringing Calavo into the publicly traded market and making it one of the largest avocado companies in the world, returned to Calavo as CEO in 2023, hoping to pump spark shareholder value, which had taken a huge dip in value since his departure, and also due in large part to the Covid-19 pandemic.
During his second stint, Calavo got more focused. In an effort to get back to the basics of its core business model, Calavo sold its fresh-cut business and related real estate for $83 million in 2024.
According to Calavo, the deal would also be a significant reduction to the company’s post-transaction selling, and general and administrative expenses. The company also used the money to reduce its debt while also growing its core business and returning cash to shareholders.
“We are pleased to announce that the sale of our Fresh Cut business has been finalized, which will allow us to focus on our core avocado and guacamole businesses,” Cole said in a press release.
Cole first retired in early 2020, when shares were still above $60 a share for the most part. When he returned in March 2023, shares were below $20. As of Nov. 19, shares of Calavo closed at $18.79, a more than 15% drop since Cole announced his second retirement.
“It has been a privilege to lead Calavo and work alongside such dedicated employees, growers, and partners. I’m proud of what we’ve achieved together and confident that John’s experience and strong leadership will position the company for continued success,” Cole said.
Along with the CEO transition, Calavo is also considering a buyout offer it received months ago. Announced in June, Calavo said that it had received a non-binding, indicative proposal to acquire all of the outstanding shares of the Company for consideration nominally valued at $32 per share of the company’s common stock, consisting of a combination of stock of the proposing party and cash.
Among other conditions, the proposal is subject to due diligence and financing.
“The company’s Board of Directors is reviewing this non-binding proposal in consultation with its legal and financial advisors. This non-binding proposal may or may not lead to a transaction, and the company does not intend to comment or update further unless warranted,” Calavo said in a press release.
Along with the CEO news, Calavo said it is still “evaluating all strategic alternatives.”
“The review process remains ongoing and may or may not result in a transaction. Calavo does not intend to comment further unless a specific development warrants disclosure,” the company said in a press release.
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