A $430m deal that could reshape North America’s avocado supply

Mission Produce has entered into an agreement to acquire Calavo Growers in a cash-and-stock transaction aimed at strengthening its North American avocado business and diversifying its broader fresh produce and value-added food portfolio. The deal is designed to expand Mission’s sourcing footprint across Mexico and California while adding prepared foods and complementary produce categories to its operations.

The transaction will bring Calavo’s fresh avocado, tomato and papaya operations, along with its prepared food business such as guacamole, into Mission’s vertically integrated platform. Mission’s management indicated that the combined grower networks and infrastructure would improve supply reliability, support year-round availability and enhance service for retail and foodservice customers.

Calavo’s leadership signalled that joining a larger global platform would allow the company to accelerate growth, invest further in innovation and extend the reach of the Calavo brand, while giving shareholders exposure to a broader fresh produce group.

The deal values Calavo at around $430 million. Shareholders are set to receive $27.00 per share, made up of cash and Mission stock, representing a premium of about 26% to Calavo’s recent trading average. After closing, Mission shareholders are expected to hold just over 80% of the combined company.

Both boards have approved the transaction, which is expected to close by the end of August 2026, subject to regulatory and shareholder approvals. The combined company will be headquartered in Oxnard, California, with targeted cost synergies of approximately $25 million within 18 months after completion.

Industry stakeholders interested in collaboration or sourcing opportunities can inquire for a free consultation.