OXNARD, Calif. - Mission Produce, Inc. (NASDAQ:AVO) announced today it has completed its acquisition of Calavo Growers, Inc., according to a press release.
The transaction combines two North American avocado companies. Calavo is a provider of fresh avocados, tomatoes, papayas, and prepared foods including guacamole. The acquisition adds prepared foods and additional fresh produce categories to Mission's existing avocado and mango operations.
Under the terms, Calavo stockholders received $26.05 per share, consisting of $14.85 in cash and 0.9790 shares of Mission common stock for each Calavo share. The calculation was based on Mission's closing stock price of $11.44 on May 27, 2026. Mission's stock currently trades at $11.25 with a market capitalization of $796 million, though shares have declined roughly 6% over the past six months.
Calavo is now a wholly owned subsidiary of Mission. B. John Lindeman, former President and CEO of Calavo, will lead the Calavo business during a transition period and report to Mission CEO John Pawlowski.
Nasdaq suspended trading of Calavo common stock prior to the opening of trading today. The shares are expected to be delisted from Nasdaq by June 8, 2026.
Kathleen Holmgren has been appointed to Mission's Board of Directors effective today. The board now consists of 10 directors, with Stephen J. Barnard continuing as Executive Chair. Holmgren previously served as Chairman of Calavo's Board and currently serves as a Principal at Sage Advice Partners and on the board of Extreme Networks.
Mission Produce sources, produces and distributes fresh Hass avocados and mangos to customers in over 25 countries. The company owns five packing facilities across the U.S., Mexico, Peru, and Guatemala. Despite recent stock pressure, fair value metrics suggest Mission remains undervalued, with the company maintaining profitability over the last twelve months.
Evercore served as financial advisor to Mission, with Latham & Watkins LLP as legal advisor. Jefferies LLC served as financial advisor to Calavo, with Cozen O'Connor as legal advisor.
In other recent news, Mission Produce has received Mexican antitrust clearance for its pending acquisition of Calavo Growers. Additionally, the Hart-Scott-Rodino waiting period has expired without objections. Mission is evaluating a potential one-time Mexican transfer tax of up to $5 million related to the merger. Stockholders elected directors and approved the auditor at the annual meeting. Freedom Capital Markets initiated coverage with a Buy rating and a price target of $15.00. The merger is expected to close on May 28, 2026, pending remaining conditions.
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