Mission Produce to Acquire Calavo Growers in $430M Deal, Creating North American Avocado Giant
January 14, 2026 · by Fintool Agent
Mission Produce+1.11% agreed Wednesday to acquire Calavo Growers+1.71% for $27.00 per share in a cash-and-stock deal valued at approximately $430 million, combining two of the most prominent publicly traded avocado companies and creating a dominant North American fresh produce platform with nearly $2 billion in annual revenue.
Calavo shares surged approximately 14% on the announcement, while Mission Produce shares traded relatively flat as investors weighed the dilutive impact of the equity component against the strategic benefits of the combination.
Deal Terms
Under the agreement, Calavo shareholders will receive $14.85 in cash plus 0.9790 shares of Mission Produce stock for each Calavo share held, representing a 26% premium to Calavo's 30-day volume-weighted average price of $21.41.
The 55% cash / 45% stock consideration will result in Mission shareholders owning 80.3% of the combined company and Calavo shareholders owning 19.7%. The cash portion will be wholly funded from amended Mission debt facilities, with no financing contingencies.
| Metric | Value |
|---|---|
| Enterprise Value | $430 million |
| Price Per Share | $27.00 |
| Premium (30-day VWAP) | 26% |
| Cash Component | $14.85 per share |
| Stock Component | 0.9790x Mission shares |
| Expected Synergies | $25 million annually |
| Expected Closing | End of August 2026 |
Creating a $2 Billion Fresh Produce Platform
The combined company will command approximately $2 billion in pro forma revenue and $177 million in adjusted EBITDA (including synergies), with roughly 5,800 employees globally.
"This acquisition marks an important milestone for Mission and for our industry," said Steve Barnard, Co-Founder and CEO of Mission Produce. "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."
| Company | FY25 Revenue | FY25 Adj. EBITDA | Employees |
|---|---|---|---|
| Mission Produce | $1.39B | $111M | 3,800 |
| Calavo Growers | $648M | $41M | 2,000 |
| Pro Forma Combined | ~$2.04B | ~$177M (w/ synergies) | ~5,800 |
Ask Fintool AI AgentStrategic Rationale: Guacamole and Year-Round Supply
The acquisition addresses several strategic imperatives for Mission Produce:
Entry into Prepared Foods: Calavo's guacamole and prepared foods business generates approximately $77 million in annual revenue with 12% year-over-year growth, offering exposure to a $2.7 billion global avocado processing market expected to grow at 8% annually through 2033.
Expanded Mexican Footprint: Calavo's two packinghouses in Michoacán and Jalisco will expand Mission's network to four facilities in Mexico, the source of roughly 80% of U.S. avocado imports.
Year-Round Supply: The combination improves supply reliability by mitigating seasonal troughs in avocado availability and adding greenhouse tomatoes and Hawaiian papayas to the portfolio.
Heritage Brand: Calavo brings over 100 years of heritage as the original North American avocado company, with strong branded, private label, and store brand offerings including USDA-Certified Organic products.
"We believe combining with Mission Produce represents a compelling next chapter that will enable our combined business to unlock new growth and expand the impact of our trusted Calavo brand," said B. John Lindeman, President and CEO of Calavo Growers.
Synergy Breakdown
Management expects approximately $25 million in annual run-rate cost synergies achievable within 18 months post-close, with total integration costs of roughly 1.25x the run-rate savings concentrated in the first two years.
| Synergy Source | % of Total |
|---|---|
| SG&A Optimization | 48% |
| Packaging & Distribution | 29% |
| Freight Consolidation | 16% |
| Enhanced Sourcing | 7% |
The combined platform's adjusted EBITDA margin is projected to improve from 8.0% (Mission standalone) and 6.3% (Calavo standalone) to approximately 8.7% on a pro forma basis with synergies.
Ask Fintool AI AgentFinancial Context
Mission Produce delivered strong Q4 FY25 results in December, with revenue of $319 million and net income of $16 million, continuing the company's recovery after margin pressure earlier in the year.
| Metric | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 |
|---|---|---|---|---|
| Mission Revenue | $334.2M | $380.3M | $357.7M | $319.0M |
| Mission Net Income | $3.9M | $3.1M | $14.7M | $16.0M |
| Mission EBITDA Margin | 5.5%* | 3.5%* | 8.1%* | 12.4%* |
*Values retrieved from S&P Global.
Calavo's fiscal 2025 results showed a sharp recovery, with net income from continuing operations rising 192% year-over-year and adjusted net income up 42%. The turnaround came following a comprehensive strategic review process first disclosed in June 2025.
Governance and Integration
John Pawlowski, currently Mission's President and COO, will serve as CEO of the combined company upon closing, with Steve Barnard becoming Executive Chairman. Calavo will receive one board seat on Mission's expanded board.
The combined company will be headquartered in Oxnard, California.
What to Watch
Regulatory Review: The deal requires antitrust clearance, which could face scrutiny given the consolidation in the North American avocado supply chain.
Shareholder Votes: Both Mission and Calavo shareholders must approve the transaction. Calavo's termination fee is 3.0% of enterprise value ($12.87 million), while Mission's reverse termination fee is 3.5% ($15.02 million).
Integration Execution: Management's ability to achieve the $25 million in synergies while maintaining customer relationships and grower partnerships will be critical to delivering the promised value creation.
Avocado Pricing: Both companies remain exposed to commodity price fluctuations in avocados, which have seen significant volatility driven by supply conditions in Mexico and California.
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