Mission Produce, Inc. has agreed to acquire Calavo Growers, Inc. in a cash‑and‑stock transaction that values Calavo at $27.00 per share, or roughly $430 million in enterprise value. The deal was announced on January 14, 2026 and is expected to close by the end of August 2026, pending regulatory approvals and shareholder votes.
Under the terms, Mission will pay $14.85 in cash and issue 0.9790 shares of its common stock for each Calavo share. The transaction will give Mission shareholders an estimated 80.3 % stake in the combined company, while Calavo shareholders will own 19.7 %.
The acquisition is positioned as a vertical integration strategy that will expand Mission’s sourcing network across California, Mexico, Peru and Colombia and add Calavo’s prepared‑food business to Mission’s product mix. The move is intended to secure avocado supply amid a record‑supply environment that has pressured prices, and to diversify Mission’s revenue base into the high‑growth prepared‑foods segment, which is projected to grow at 8 % CAGR to a $2.7 billion market.
Mission’s recent earnings report for fiscal 2025 showed record revenue of $1.39 billion and a Q4 earnings‑per‑share beat, underscoring the company’s operational strength. Calavo, by contrast, reported a 26.6 % decline in Q4 2025 revenue and missed revenue expectations, although its net income improved year‑over‑year. The $27.00 per‑share price represents a 26 % premium to Calavo’s 30‑day volume‑weighted average price, and the deal is projected to generate $25 million in cost synergies within 18 months of closing.
Steve Barnard, co‑founder and CEO of Mission, said the transaction would “build a stronger, more diversified company positioned for sustainable growth.” John Pawlowski, Mission’s president, COO and CEO‑designate, added that the deal would “expand our premium avocado position in North America and create a leading global fresh produce platform.” B. John Lindeman, Calavo’s president and CEO, noted that the combination would “unlock new growth and expand the impact of our trusted Calavo brand.”
The deal may attract antitrust scrutiny because it combines two of the largest avocado players in North America. It also comes at a time when the avocado market is experiencing record supply, which has tightened margins for growers and processors alike. The prepared‑foods market, however, remains robust, and Calavo’s guacamole and salsa businesses are expected to complement Mission’s existing fresh‑produce operations.
Management estimates that the $25 million annual synergies will be achieved within 18 months, implying a payback period of roughly 17 years based on the $430 million enterprise value. While the long payback period reflects the scale of the transaction, the combination is expected to create a more resilient business model that can better weather supply shocks and capture growth in the prepared‑foods segment.
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