Mission Produce to acquire Calavo Growers

Mission Produce and Calavo Growers have announced that they have entered into a definitive agreement under which Mission will acquire Calavo in a cash-and-stock transaction.

“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.

”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,” he outlined.

John Pawlowski, Mission’s president, COO and CEO-designate, said the group had “great respect” for Calavo’s heritage and welcomed the company into the Mission network.

“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,” he said.

”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.”

A century in the making

Founded over 100 years ago, Calavo has evolved into a global purveyor of quality fresh produce.

Today, its 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, as well as private labels and store brands.

“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,” he added. “By joining a larger global platform, we will be better positioned to invest, innovate, and serve the market at scale.”

Strategic rationale

The acquisition is expected to bolster Mission’s premier avocado and fresh produce platform in North America and accelerate global expansion.

Bringing Calavo into the Mission network is designed to build on Mission’s leading position across the avocado value chain by expanding its foothold in Mexico and California.

Following closing, Calavo’s two packhouses in Michoacán and Jalisco will expand Mission’s network to four packhouses in Mexico, increasing access to high-quality fruit from the country.

”This expanded footprint and robust global distribution network positions Mission to provide a more consistent, year-round supply while supporting continued growth across its global customer base,” the group outlined.

The deal creates a vertically integrated platform, following closing, with sourcing security and expanded year-round portfolio across complementary fresh produce categories; is expected to drive business model diversification with expanded offerings aligned with evolving customer demand; and is seen as a value creation opportunity for shareholders with operational synergies expected to drive significant EBITDA growth and cash flow generation.

The transaction is expected to deliver US$25mn of annualised cost synergies within 18 months post-close, with meaningful upside potential, Mission pointed out.

Transaction details

Under the terms of the agreement, Calavo stockholders will receive US$27 per share (based on the 30-trading day volume weighted average price of Mission common stock for the period ending 13 January 2026), comprised of US$14.85 in cash and 0.9790 shares of Mission for each share of Calavo.

Upon close, based on the shares currently outstanding, Mission shareholders are expected to own approximately 80.3 per cent of the combined company and Calavo shareholders are expected to own approximately 19.7 per cent.

The transaction values Calavo at a total enterprise value of approximately US$430mn, and the transaction price represents a premium of approximately 26 per cent to Calavo’s 30-trading day volume weighted average price of US$21.41. 

The boards of directors of both companies have approved the transaction, which is expected to close by the end of August 2026, subject to the receipt of required regulatory approvals, the approvals of Mission and Calavo shareholders, and the satisfaction of other customary closing conditions.

Upon close of the transaction, Pawlowski – who on 18 December was named Mission’s CEO effective as of the close of the company’s April 2026 Annual Meeting of Shareholders – is expected to serve as CEO of the combined company.

Steve Barnard, who will become executive chairman of Mission effective as of the close of the 2026 Annual Meeting, is expected to hold the same title for the combined company.

The company will be headquartered at Mission’s corporate offices in Oxnard, California.