Global producer and distributor of fresh avocados Mission Produce says it has entered into an agreement to acquire Calvo Growers, a provider of fresh avocados, tomatoes, papayas and value-added prepared foods.
Founded more than 100 years ago as the original avocado company in North America, Calavo Growers’ offerings now include fresh avocados sourced from California, Mexico, Peru and Colombia; tomatoes; Hawaiian papayas; and a variety of ready-to-eat products such as guacamole and salsas. Its products are sold under the Calavo brand name, proprietary sub-brands, as well as private labels and store brands.
Mission Produce says the transaction values Calavo at a total enterprise value of approximately $430 million and the deal is expected to close by the end of August 2026.
“Calavo is one of the most established names in the avocado industry, with a long history in North America and a diversified portfolio of fresh and value-added produce,” John Pawlowski, president and chief operating officer and CEO-designate of Mission Produce, tells The Packer. “By bringing Calavo into the Mission family, we expect to create tremendous opportunities to build on our leadership in the North American avocado business and enhance our customer service worldwide.”
Mission Produce says the acquisition is an important milestone for it and for the fresh produce industry. The company says this move will bolster its avocado and fresh produce platform in North America and accelerate global expansion. Mission Produce says it will also build on its position across the value chain and expand its foothold in Mexico and California.
“The two businesses are highly complementary,” Pawlowski says. “Mission brings scale, infrastructure and global distribution, while Calavo brings strong customer relationships, brand equity and prepared foods capabilities. The addition of Calavo will create a fully integrated model that improves reliability, strengthens sourcing security and allows us to operate more efficiently across seasons.”
Mission Produce says this deal will help the company expand internationally and will also help enhance its supply reliability and sourcing security with the combination of both companies’ grower networks.
Following the closing of the deal, Mission Produce says Calavo’s packinghouses in the Mexican states of Michoacán and Jalisco will expand the company’s network to four packinghouses in Mexico. The company says this expanded footprint and global distribution network will position it to provide a more consistent year-round supply while supporting continued growth across its global customer base.
The company says this deal will also broaden its existing avocado, mango and blueberry portfolio into additional fresh produce categories offered by Calavo, including tomatoes and papayas. Mission Produce says the produce diversification will enable a more efficient utilization of the combined distribution network, improve year-round productivity and help mitigate seasonal troughs in avocado supply.
Mission Produce says the acquisition of Calavo will also expand the company’s reach into the high-growth and attractive prepared food segment, which will complement its existing avocado business with Calavo’s avocado-based prepared foods, such as guacamole.
“Strategically, this acquisition will strengthen Mission’s position in the North American avocado and fresh produce market while accelerating international expansion through scale and sourcing optionality,” Pawlowski tells The Packer. “It also meaningfully diversifies the business, expanding Mission’s product portfolio into prepared foods, tomatoes and papayas.”
Mission Produce also says the deal will create value for its shareholders and drive significant EBITDA growth and cash flow generation. Upon close, based on the shares currently outstanding, Mission Produce says its shareholders are expected to own approximately 80.3% of the combined company and Calavo shareholders are expected to own about 19.7%.
“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,” says B. John Lindeman, president and CEO of Calavo. “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.”
