Mission Produce Plucks Avocado Rival Calavo Growers

Credit: Konmac / Shutterstock

Mission Produce has struck a woody to bargain chap awesome avocado supplier Calavo Growers.

The transaction, which values Calavo astatine astir $430m, comes 7 months aft nan California-based business said it had received a takeover attack from an unnamed suitor.

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Mission Produce, besides headquartered successful California, said it expects its shareholders will ain conscionable complete 80% of nan mixed business erstwhile nan woody is finalised. Investors successful Calavo will clasp nan rest.

“This acquisition marks an important milestone for Mission and for our industry,” Mission Produce co-founder and CEO Steve Barnard said.

“When nan transaction closes, we judge we will person enhanced standard and a much diversified business exemplary and merchandise portfolio, truthful that we tin present moreover greater worth to our customers, growers, employees, and shareholders.”

Set up successful 1983, Mission Produce is champion known for its avocados but it besides supplies mangoes and grows blueberries.

Calavo, which is complete 100 years old, besides has its origins successful avocados, which it now sources from California, Mexico, Peru, and Colombia. The company’s business besides includes tomatoes, papayas and a scope of ready-to-eat products specified arsenic guacamole and salsas. It markets its nutrient nether its namesake marque and has private-label contracts.

Mission Produce said nan woody would double nan number of its packhouses successful Mexico to 4 and thief it “provide a much consistent, year-round supply”.

It besides said a broader merchandise scope would boost productivity and mitigate nan “seasonal troughs” successful nan proviso of avocados.

“We judge combining pinch Mission represents a compelling adjacent section that will alteration our mixed business to unlock caller maturation and grow nan effect of our trusted Calavo brand, while besides providing our shareholders pinch compelling worth and nan opportunity to participate arsenic a shareholder of a world leader successful a increasing sector,” Calavo president and CEO John Lindeman said.

Lindeman was appointed Calavo main executive past month. A erstwhile Calavo finance chief, he near nan business successful 2020 to subordinate hydroponics instrumentality patient Hydrofarm Holdings.

Last month, Mission Produce announced John Pawlowski would beryllium its CEO arsenic of nan adjacent of its AGM successful April and he is expected to beryllium nan mixed group’s CEO. Barnard is group to go Mission Produce’s executive chairman.

Under nan position of nan deal, Calavo investors will person $27 a share, comprised of $14.85 successful rate and 0.9790 shares of Mission for each stock of Calavo. The boards of some publically listed companies person approved nan deal. The businesses expect to adjacent nan transaction by nan extremity of August.