Mission Produce buying Calavo for $430M
Two publicly traded Ventura County agribusinesses will be combining operations after Oxnard-based Mission Produce announced it is purchasing Santa Paula-based Calavo Growers in a cash-and-stock transaction worth $430 million.
Under the terms of the deal announced Jan. 14, Mission agreed to pay Calavo stockholders $27 per share, comprised of $14.85 in cash and 0.9790 shares of Mission for each share of Calavo. Upon close, which is expected at the end of August, Mission shareholders are expected to own approximately 80.3% of the combined company and Calavo shareholders are expected to own approximately 19.7%.
The transaction values Calavo at about $430 million, with Mission paying approximately a 26% to Calavo’s 30-trading-day volume-weighted average price of $21.41.
Mission Co-Founder and CEO Steve Barnard said the deal “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 sourcing, prepared foods capabilities, and deep customer relationships, we intend to build a stronger, more diversified company positioned for sustainable growth,” he said in a press release. “When the transaction closes, we believe we will have enhanced scale and a more diversified business model and product portfolio, so that we can deliver even greater value to our customers, growers, employees, and shareholders.”
Barnard announced in mid-December that he would be stepping down from his CEO role and transitioning to executive chairman in April 2026. President and COO John Pawlowski has been named the next CEO. He will also be the CEO of the combined company.
“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 Pawlowski. “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. In line with our long-term growth strategy, we believe this transaction enhances the value we deliver to our customers, growers, and partners, while reinforcing our commitment to operational excellence.”
Founded over 100 years ago, Calavo specializes in sourcing, packing and distributing mainly avocados, but also tomatoes and papayas. Mission, a world leader in sourcing, producing, and distributing fresh Hass avocados, believes the deal will bolster its premier avocado and fresh produce platform in North America and accelerate global expansion.
Mission also said that they expect the deal to add $25 million of annualized cost synergies within 18 months post-close, with meaningful upside potential.
Once the deal closes, the combined headquarters will remain in Oxnard.
“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, while also providing our shareholders with compelling value and the opportunity to participate as a shareholder of a global leader in a growing sector. Mission shares our values and our commitment to quality and consistency for customers and growers alike. By joining a larger global platform, we will be better positioned to invest, innovate, and serve the market at scale.”
Evercore is serving as exclusive financial advisor to Mission, and Latham & Watkins LLP is serving as its legal advisor. Alvarez & Marsal is serving as Mission’s business, tax and financial diligence advisor, and FGS Global is serving as Mission’s strategic communications advisor.
Jefferies LLC is serving as exclusive financial advisor to Calavo, and Cozen O’Connor P.C. is serving as its legal advisor. PwC is serving as Calavo’s financial, tax and synergies diligence advisor, and Financial Profiles is serving as Calavo’s strategic communications advisor.
email: [email protected]
