Mission Produce to Acquire Calavo Growers in Strategic Move

On January 14, 2026, Mission Produce, Inc., a prominent player in the avocado and fresh produce market, announced its definitive agreement to acquire Calavo Growers, Inc., a leading provider of avocados, tomatoes, papayas, and prepared foods like guacamole. The transaction, valued at approximately $430 million, will be executed through a combination of cash and stock, with Calavo shareholders receiving $27 per share—$14.85 in cash and 0.9790 shares of Mission stock.

Mission Produce to acquire Calavo Growers

The acquisition aims to enhance Mission's position in the avocado supply chain and expand its footprint in North America, particularly in Mexico and California. Calavo's two packinghouses in Michoacán and Jalisco will increase Mission's operational capacity to four packinghouses in Mexico, thereby improving access to high-quality avocados, which are the primary source for the U.S. market. This expanded network is expected to provide a more consistent year-round supply and support growth across Mission's global customer base.

Mission Produce to acquire Calavo GrowersMission Produce to acquire Calavo Growers

The merger is anticipated to diversify Mission's product offerings by integrating Calavo's prepared foods segment, which includes guacamole and other avocado-based products. This move aligns with evolving consumer demand for fresh and convenient food options. Additionally, the combined entity will leverage operational synergies, projected to yield $25 million in annualized cost savings within 18 months post-close.

Mission Produce to acquire Calavo Growers

Upon completion of the transaction, John Pawlowski, currently Mission's President and COO, will assume the role of CEO of the combined company, while Steve Barnard will transition to Executive Chairman. The corporate headquarters will remain in Oxnard, California, at Mission's existing facilities.

Mission Produce to acquire Calavo Growers

The acquisition is structured to ensure that Mission shareholders will own approximately 80.3% of the combined company, while Calavo shareholders will hold about 19.7%. The transaction price represents a 26% premium over Calavo's recent trading price, reflecting a strategic valuation that underscores the potential for growth and value creation.

Mission Produce to acquire Calavo Growers

Steve Barnard, Co-Founder and CEO of Mission, emphasized the significance of the acquisition, stating, “This acquisition marks an important milestone for Mission and for our industry... we intend to build a stronger, more diversified company positioned for sustainable growth.” B. John Lindeman, CEO of Calavo, expressed optimism about the merger, highlighting the potential for unlocking new growth and expanding the impact of the Calavo brand.

Mission Produce to acquire Calavo Growers

While the acquisition has been largely viewed positively, some analysts have noted concerns regarding the integration of two large entities and the challenges that may arise in aligning corporate cultures and operational practices. Additionally, there was a previous unsolicited offer for Calavo that was rejected, raising questions about the competitive landscape and the valuation of the deal.

Mission Produce to acquire Calavo Growers

The transaction is expected to close by the end of August 2026, pending regulatory approvals and shareholder votes from both companies. The successful completion of this acquisition will position Mission Produce as a leading global player in the fresh produce sector, with enhanced capabilities to meet growing consumer demands.

Mission Produce to acquire Calavo Growers