Santa Paula, Calif.-based Calavo Growers, through its Renaissance Food Group subsidiary, has signed a definitive agreement to acquire SFFI Co. Inc., also known as Simply Fresh Fruit.
The fresh-cut fruit company, Vernon, Calif., focuses on the foodservice/hospitality market.
“The purchase of Simply Fresh Fruit and its combination into the larger RFG platform makes sense on every level,” Calavo chairman, president and CEO Lee Cole said in a news release. “SFFI has built an impressive business, both operationally and financially. It enables Calavo to efficiently add volume on favorable terms across existing RFG production facilities.”
Cole said SFFI provides Calavo “with a profitable, ‘pure-play’ vehicle for accelerating the company’s growth in these additional categories, and expands RFG’s total potential addressable market for its core fresh-cut fruit business. We look forward to SFFI becoming part of the Calavo family.”
Calavo’s Renaissance Food Group segment offers fresh-cut fruits and vegetables and other prepared foods including wraps, salads and sandwiches. RFG also manufactures and distributes guacamole and salsa.
SFFI was founded in 1999 and has been privately held, according to the release. It had more than $30 million in sales in its most recent fiscal year, according to the release.
Simply Fresh Fruit’s foodservice focus is expected to complement the Renaissance Food Group’s retail-grocery expertise, according to the release. The terms of the transaction were not disclosed, and the deal is expected to close by mid-year, according to the release.
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