Mission Produce to Acquire Calavo Growers, Diversify Into Tomatoes and Papayas
Mission Produce plans to acquire Calavo Growers to integrate its packinghouses and grower networks, expanding avocado sourcing across Mexico and California and diversifying into tomatoes, papayas and prepared foods. The deal could boost scale, improve year-round supply stability and drive cost synergies as the company transitions to a fresh-produce platform.
1. Acquisition Details
Mission Produce has announced a definitive agreement to acquire Calavo Growers, integrating Calavo’s packinghouses, grower relationships and distribution channels into its operations. The strategic move aims to expand Mission Produce’s platform beyond avocados and create a more diversified fresh-produce business.
2. Supply Chain Expansion
By adding Calavo’s assets, Mission Produce will strengthen avocado sourcing across key regions in Mexico and California, enhancing year-round availability and operational efficiency. This broader footprint is expected to stabilize supply through seasonal fluctuations and improve resilience against weather disruptions.
3. Diversification and Valuation Impact
The acquisition opens entry into faster-growing segments such as tomatoes, papayas and prepared foods like guacamole, unlocking potential cost synergies and revenue diversification. Shares have risen 19.9% over three months versus an 11.6% industry gain, trading at a 22.33x forward P/E versus 17.83x, with consensus estimates indicating a 10.1% earnings decline in fiscal 2026 and 4.2% growth in fiscal 2027.