Dive Brief:
- Mission Produce is purchasing rival Calavo Growers in a deal that combines two of the largest avocado companies in North America.
- The cash-and-stock transaction, set to close by the end of August, values Calavo at $430 million. In addition to avocados, Calavo sells guacamole and dips under its own brand or through private label and foodservice providers.
- The deal positions Mission to expand within the prepared foods segment and grow internationally. The addition of Calavo also diversifies Mission's produce portfolio to include tomatoes and papayas.
Dive Insight:
The addition of Calavo gives Mission an opportunity to diversify its business by adding new produce to its portfolio while enabling it to enter the prepared foods sector with ready-made guacamole, a high-growth category.
The global avocado processing segment was valued at $2.7 billion in 2025 and is expected to experience an 8% compound annual growth rate through 2033, according to a Mission presentation on the transaction.
"With this acquisition, we strive to expand our premium avocado position in North America and create a leading global fresh produce platform, which we believe will be well-positioned to capture the increasing demand for fresh, healthy, and convenient foods," John Pawlowski, Mission's chief operations officer and incoming CEO, said in a statement.
Combining the two avocado suppliers would create a company with more than $2 billion in net sales. It would also cement Mission as a leading avocado supplier in the U.S. with a pathway to expand internationally.
As consumers prioritize quality, convenience and healthier foods, demand for produce and other products in the fresh department of grocery stores has surged in popularity. Foodservice achieved record sales of $56 billion in 2024, according to FMI. Additionally, 42% of grocery store sales for 2024 came from the fresh sector, which includes produce and meat.
Beyond new sales opportunities for Mission, the companies estimated the transaction would generate annual cost synergies of $25 million. The savings would come at a time when the avocado industry at large faces declining profits, with supply recovering following prolonged shortage.
Mission, for example, saw a 10% drop in revenue for the fourth quarter compared to the prior year. The drop came as a 13% jump in volume growth was not enough to outweigh a 27% decline in prices.
Lower avocado prices also pressured Calavo earnings, with sales in its fresh segment dropping 31% in the fourth quarter from the prior year. Calavo has struggled with unique headwinds, including a now-dropped Department of Justice investigation into foreign bribery allegations and a temporary facility shutdown for pest remediation.
B. John Lindeman, president and CEO of Calavo Growers, said in a statement that joining Mission better positions the brand to "invest, innovate, and serve the market at scale.”
“We believe combining with Mission Produce represents a compelling next chapter that will enable our combined business to unlock new growth and expand the impact of our trusted Calavo brand," he said, "while also providing our shareholders with compelling value and the opportunity to participate as a shareholder of a global leader in a growing sector."
Calavo has 2,000 global employees with a product mix primarily focused on avocados and guacamole, though it also includes tomatoes and papayas. Mission has recently expanded its produce offerings by entering the blueberry and mango markets.
