Mission Produce has entered into a definitive agreement to acquire Calavo Growers in a transaction valued at approximately $483 million. Under the terms of the deal, Calavo shareholders will receive $27 per share, comprised of $14.85 in cash and 0.97 shares of Mission Produce common stock. The transaction is expected to close by the end of August 2026, at which point Mission Produce shareholders will own roughly 80.3% of the combined company.

This acquisition will expand Mission Produce’s vertically integrated supply chain across key growing regions in Mexico and California, enhancing year-round avocado availability and quality. It also marks Mission’s entry into the prepared foods segment—an area with projected annual growth rates in excess of 8%—by leveraging Calavo’s existing processing and distribution infrastructure for guacamole and avocado-based snacks.

Management forecasts at least $25 million in annual run-rate synergies by closing, driven primarily by procurement optimization, logistics consolidation and cross-selling opportunities. Additional cost savings are expected to materialize within 18 months post-close as production facilities are rationalized and overhead functions are integrated.

By combining operations with Calavo, Mission Produce aims to diversify its product portfolio beyond fresh avocados into value-added offerings, which could support margin expansion over the medium term. The enlarged scale and broadened customer base are also expected to provide greater bargaining leverage with retail partners and foodservice operators.