Mission Produce announced it has agreed to acquire Calavo Growers in a cash-and-stock deal that would expand Mission’s North American avocado footprint, add new fresh-produce categories, and provide an entry into prepared foods through Calavo’s guacamole and related products.
Under the terms of the definitive agreement, Calavo shareholders will receive $27.00 per share, consisting of $14.85 in cash and 0.9790 shares of Mission common stock for each Calavo share, based on Mission’s 30-trading-day volume weighted average price through Jan. 13, 2026. The transaction values Calavo at an enterprise value of about $430 million and represents an approximate 26% premium to Calavo’s 30-day VWAP of $21.41, according to the companies.
Mission said the combination is expected to strengthen its vertically integrated avocado platform by expanding sourcing across Mexico and California and improving year-round supply consistency for customers. Calavo’s two packinghouses in Michoacán and Jalisco would increase Mission’s Mexico packinghouse network to four following closing, improving access to fruit from the largest source of avocados imported into the U.S. The companies also highlighted portfolio diversification beyond avocados, with Calavo’s tomatoes and Hawaiian papayas complementing Mission’s existing expansion into mangos and blueberries.
A key part of the investment case is cost savings. Mission and Calavo said they expect to achieve approximately $25 million in annualized cost synergies within 18 months after closing, with additional upside potential, supporting anticipated EBITDA growth and cash flow generation.
The boards of both companies have approved the deal, which is expected to close by the end of August 2026, subject to regulatory approvals, shareholder approvals from both companies, and other customary closing conditions. Following closing, Mission shareholders are expected to own about 80.3% of the combined company, with Calavo shareholders owning about 19.7%. The combined company would be headquartered at Mission’s corporate offices in Oxnard, California.
On leadership, Mission said President and COO John Pawlowski—previously named CEO effective as of the close of Mission’s April 2026 annual meeting—would serve as CEO of the combined company upon closing. Co-founder Steve Barnard is expected to serve as executive chairman. The combined board is expected to have 10 directors, and one director designated by mutual agreement of the companies is expected to join Mission’s board under the agreement’s terms.
Evercore is serving as Mission’s exclusive financial advisor, with Latham & Watkins as legal advisor. Calavo is being advised by Jefferies, with Cozen O’Connor as legal advisor. The companies said they will host a joint conference call at 4:30 p.m. ET on Jan. 14, 2026, to discuss the proposed transaction.
KEY QUOTES:
“This acquisition marks an important milestone for Mission and for our industry. 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. When the transaction closes, we believe we will have enhanced scale and a more diversified business model and product portfolio, so that we can deliver even greater value to our customers, growers, employees, and shareholders.”
Steve Barnard, Co-Founder and Chief Executive Officer, Mission Produce
“We have great respect for Calavo’s heritage as a trusted name in fresh and prepared foods, and are proud to welcome their organization into the Mission network. With this acquisition, we strive to expand our premium avocado position in North America and create a leading global fresh produce platform, which we believe will be well-positioned to capture the increasing demand for fresh, healthy, and convenient foods. In line with our long-term growth strategy, we believe this transaction enhances the value we deliver to our customers, growers, and partners, while reinforcing our commitment to operational excellence.”
John Pawlowski, President and Chief Operating Officer and Chief Executive Officer-designate, Mission Produce
“Over the past century, the Calavo team has built this company into a global leader in the sourcing and distribution of avocados, tomatoes, papayas, and the processing of guacamole and other prepared foods. We believe combining with Mission represents a compelling next chapter that will enable our combined business to unlock new growth and expand the impact of our trusted Calavo brand, while also providing our shareholders with compelling value and the opportunity to participate as a shareholder of a global leader in a growing sector. Mission shares our values and our commitment to quality and consistency for customers and growers alike. By joining a larger global platform, we will be better positioned to invest, innovate, and serve the market at scale.”
B. John Lindeman, President and Chief Executive Officer, Calavo Growers
