Mission Produce to acquire Calavo Growers for $27.00 per share in cash, stock

Mission Produce (AVO) and Calavo Growers (CVGW) announced that they have entered into a definitive agreement under which Mission will acquire Calavo in a cash-and-stock transaction. The transaction is expected to deliver $25M of annualized cost synergies within 18 months post-close, with meaningful upside potential. Under the terms of the Agreement, Calavo stockholders will receive $27.00 per share, comprised of $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% of the combined company and Calavo shareholders are expected to own approximately 19.7%. The transaction values Calavo at a total enterprise value of approximately $430M. The transaction price represents a premium of approximately 26% to Calavo’s 30-trading day volume weighted average price of $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, John Pawlowski 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. Pursuant to the terms of the agreement, the board of directors of the combined company is expected to be comprised of 10 individuals. Additionally, one director designated by mutual agreement of Mission and Calavo will be appointed to Mission’s board, subject to the terms and conditions of the agreement.