Mission Produce, Inc. (NASDAQ: AVO) has entered into a definitive agreement to acquire Calavo Growers, Inc. (NASDAQ: CVGW) in a cash‑and‑stock transaction valued at an enterprise value of approximately $430 million. Calavo shareholders will receive $27.00 per share, consisting of $14.85 in cash and 0.9790 shares of Mission stock for each Calavo share, representing a premium of about 26% to Calavo’s 30‑day volume‑weighted average price of $21.41. The deal will give Mission shareholders an ownership stake of roughly 80.3% in the combined company, while Calavo shareholders will own about 19.7%. The transaction is expected to close by the end of August 2026, subject to regulatory approvals and shareholder votes.
The acquisition is a strategic vertical integration play that expands Mission’s product portfolio into prepared foods such as guacamole and papaya, strengthens its supply chain by adding Calavo’s grower relationships and distribution network, and accelerates global expansion. Pro‑forma financials project combined revenue north of $2 billion and adjusted EBITDA of about $176 million, with expected annualized cost synergies of $25 million within 18 months post‑close. The deal positions the combined entity as a dominant player in the North American avocado market and a diversified fresh‑produce platform capable of capturing demand for fresh, healthy, convenient foods.
The announcement comes amid record avocado supply and price pressure, which have challenged both companies’ profitability. Calavo’s Q4 2025 results showed a 26.64% decline in revenue and missed consensus estimates, while Mission reported record FY 2025 revenue of $1.39 billion, a 13% year‑over‑year increase. The premium offered by Mission reflects the strategic value of Calavo’s prepared‑food capabilities and its established customer relationships, and addresses the headwinds of oversupply by creating a more resilient, vertically integrated supply chain.
Leadership changes accompany the transaction: John Pawlowski will serve as CEO of the combined company, Steve Barnard will become Executive Chairman, and B. John Lindeman will transition from CEO of Calavo to a role within the new organization. “This acquisition marks an important milestone for Mission and for our industry,” said Steve Barnard, co‑founder and former 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.” John Pawlowski added, “Calavo is one of the most established names in the avocado industry, and this combination will accelerate our international expansion and deepen our prepared‑food offerings.” B. John Lindeman noted, “Combining with Mission represents a compelling next chapter that will unlock new growth and expand the impact of our trusted Calavo brand.”
Investors have responded positively to the announcement, with analysts highlighting the premium and strategic fit. The deal is viewed as a significant consolidation in the avocado industry that will enhance supply‑chain resilience and create a more diversified fresh‑produce platform. The transaction is expected to deliver value through cost synergies, expanded geographic reach, and a stronger position in prepared foods, aligning with long‑term growth objectives for both companies.
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