Calavo Growers Stock Soars on $482 Million Takeover by Mission Produce
Deal unites two of the world's largest avocado suppliers, creating a diversified powerhouse in the booming global market for fresh produce.
Shares of Calavo Growers (NASDAQ: CVGW) jumped in trading after rival Mission Produce (NASDAQ: AVO) announced it would acquire the company in a cash-and-stock deal valued at approximately $482 million. The move marks a significant consolidation in the avocado industry, combining two of its most prominent players to create a global leader with enhanced scale and a more diversified product portfolio.
Under the terms of the agreement, Calavo Growers shareholders will receive $27.00 per share. The price represents a substantial premium to Calavo’s recent trading levels, signaling Mission's strong conviction in the strategic value of the merger. The specific mix of cash and stock was not immediately disclosed.
The acquisition unites two California-based avocado titans. Mission Produce, headquartered in Oxnard, is a global leader in sourcing, producing, and distributing fresh avocados. The deal brings Santa Paula-based Calavo Growers, a pioneer in the avocado industry with over a century of history, into its fold. The combined entity will have a formidable presence in the global avocado market, which was valued at nearly $24 billion in January 2026, according to industry reports.
In a statement released by Mission Produce, the company highlighted the strategic benefits of the merger, including significant operational synergies. The companies expect to achieve approximately $25 million in annualized cost savings within 18 months of the deal's closing by integrating their supply chains, optimizing distribution networks, and reducing overhead.
Beyond strengthening its core avocado business, the acquisition diversifies Mission Produce's offerings. Calavo brings a portfolio that includes other fresh produce like tomatoes and papayas, as well as a value-added prepared foods division. This expansion is expected to provide more stable revenue streams and cross-selling opportunities across a wider customer base of grocery retailers and foodservice operators.
"This transaction unites two industry pioneers and builds a stronger, more resilient company," said Mission Produce's CEO in the announcement. "By combining our strengths, we can provide a higher level of service to our customers, expand our reach, and drive innovation across the fresh produce category."
The deal comes at a time of robust demand and dynamic supply in the avocado market. Consumer appetite for the fruit remains strong, driven by health trends and its growing status as a dietary staple. Simultaneously, supply chains are adapting to variable crop yields and evolving global trade dynamics. Mexico, the world's largest avocado producer, is forecasting a record crop for the current season, which could help stabilize prices and ensure consistent supply for the newly combined company.
Mission Produce currently holds an approximate 22% market share in the avocado space. Wall Street will be watching closely to see how the integration with Calavo—itself a major player—will reshape the competitive landscape. The combined entity will be better positioned to compete with smaller suppliers and manage the complex logistics of a year-round global supply chain.
The transaction is subject to approval by shareholders of both companies and customary regulatory closing conditions. It is expected to close in the second half of the year.