Mission Produce Inc. has completed its acquisition of Calavo Growers Inc. Mission says the acquisition unites two of North America’s most established avocado companies, building on its position as a leader in the worldwide fresh produce business.
The addition of Calavo further strengthens Mission Produce’s vertically integrated global network, enhancing sourcing and packing capabilities, improving asset utilization across the network, broadening its reach across complementary fresh produce categories and accelerating its entry into the high-margin, high-growth prepared foods segment. As a result, Mission expects to deliver more comprehensive, end-to-end service with greater supply reliability, flexibility and enhanced scale to drive innovation across the global fresh produce industry.
“Today marks a significant milestone for our company and for our industry,” says Mission Produce CEO John Pawlowski. “The successful completion of this transaction reflects our commitment to building a stronger, more diversified company — one that is well positioned to meet the growing demand for fresh, healthy and convenient foods. Mission’s vertically integrated platform, combined with Calavo’s sourcing capabilities, value-added offerings and deep customer relationships, gives us the scale and the operational foundation to deliver greater value across the supply chain, including opportunities to capture additional integration benefits over time.
“We are focused on executing with discipline, integrating thoughtfully and continuing to serve our customers at the highest level,” Pawlowski continues. “We are proud to welcome the Calavo team into the Mission family and believe together, we will deliver enhanced value for our customers, growers, partners and shareholders.”
With the transaction complete, Calavo is now a wholly owned subsidiary of Mission Produce. B. John Lindeman, former president and CEO of Calavo, will continue to lead the Calavo business during a transition period and will report to Pawlowski.
“For more than a century, Calavo has built its business on trusted relationships with our growers, customers and communities across North America, and that foundation remains firmly in place as we begin this next chapter with Mission,” Lindeman says. “By joining Mission, our team has access to a world-class global network, strengthening our ability to serve our partners with greater reach, reliability and innovation. I am incredibly proud of what generations of employees here at Calavo have built, and confident that together with Mission, we will continue to grow that legacy in the years ahead.”
In connection with the closing, effective May 28, Kathleen Holmgren has been appointed to Mission Produce’s board of directors, which is composed of 10 directors, with Stephen J. Barnard continuing as executive chair. Holmgren is an experienced C-level executive and former chairman of the board of Calavo, who currently serves as a principal at Sage Advice Partners and has held senior leadership roles at Automation Anywhere and Sun Microsystems. She currently serves on the board of directors of Extreme Networks, where she is a member of the nominating and governance, audit and compensation committees.
Under the terms of the agreement, Calavo stockholders will receive $26.05 per share, composed of $14.85 in cash and 0.979 shares of Mission common stock for each share of Calavo (based on the closing price of Mission Produce’s common stock of $11.44 on May 27). In connection with the closing of the transaction, Nasdaq suspended trading of Calavo common stock on Nasdaq prior to the opening of trading on May 28. The shares of Calavo common stock are expected to be delisted from Nasdaq by June 8.
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