Calavo Growers shares surge 12.40% after-hours as Mission Produce acquires company for $27 per share in $430M deal.

Calavo Growers surged 12.40% in after-hours trading following the announcement of a definitive merger agreement with Mission Produce. The deal, valued at $27 per share ($14.85 cash and 0.9790 Mission shares), values Calavo at approximately $430 million. Mission shareholders will own 80.3% of the combined entity, while Calavo shareholders will hold 19.7%. The transaction, approved by both boards, aims to enhance scale, diversify product offerings, and mitigate seasonal supply risks. Mission expects $25 million in annual cost synergies and anticipates closing the deal by August 2026. The strategic rationale includes expanding Mission’s avocado operations, integrating Calavo’s tomato and papaya divisions, and leveraging the Calavo brand’s market recognition. The premium offer reflects confidence in combined growth potential, aligning with positive shareholder value expectations.