The acquisition is now closed, removing deal uncertainty. Focus shifts to integration execution and synergy realization. Monitor the upcoming 10-Q for pro forma financials and debt levels. The expanded product portfolio (prepared foods) and sourcing network could drive revenue growth, but leverage from the cash component adds risk.
Price Chart
Executive Summary
Mission Produce completed its acquisition of Calavo Growers on May 28, 2026, issuing ~17.5M shares and $265.9M in cash to Calavo stockholders. The deal unites two major avocado companies, expands Mission's product portfolio into prepared foods, and adds Kathleen Holmgren (former Calavo chair) to the board. The cash portion was funded via existing cash and new borrowings under an amended credit facility.
Key Facts
- Total consideration: ~17,531,182 Mission shares and $265,922,425 in cash
- Calavo stockholders received $14.85 cash + 0.9790 Mission shares per Calavo share (~$26.05 total per share based on AVO close of $11.44 on May 27)
- Cash portion funded from cash on hand and new borrowings under an amended credit agreement with Bank of America
- Calavo common stock delisted from Nasdaq effective May 28, 2026
- Kathleen Holmgren appointed to Mission's board as a Class III director
- Calavo becomes a wholly owned subsidiary; former Calavo CEO B. John Lindeman will lead the business during a transition period
Financial Impact
Total deal consideration of ~$265.9M cash plus ~17.5M shares; Mission's market cap is ~$797M, so the stock component represents roughly 25% dilution. Cash consideration was debt-funded, increasing leverage.
Risk Factors
- Integration risk: combining two large avocado businesses may face operational and cultural challenges
- Increased leverage from debt-funded cash consideration could pressure credit metrics
- Dilution from ~17.5M new shares (~25% of pre-deal shares) may weigh on EPS in the near term
- Avocado price volatility and supply chain disruptions remain sector risks
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-246175 |
| Document: d227819dex991.htm | 0001193125-26-246175 |
| Document: 0001193125-26-246175-index-headers.html | 0001193125-26-246175 |
| Document: 0001193125-26-246175-index.html | 0001193125-26-246175 |
| Document: 0001193125-26-246175.txt | 0001193125-26-246175 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 8, 2026 18d ago | 8-K | $11.79 $12.08 | ▲ +2.46% | ▲ +2.74% | $11.84 (+0.42%) |
Aug 16, 2026 10w ago | Institutional Cluster | $12.95 $13.13 | ▲ +1.39% | ▲ +2.58% | $11.84 (−8.57%) |
Jul 8, 2026 15w ago | Insider Buy | $13.35 $13.70 | ▲ +2.62% | ▲ +2.75% | $11.84 (−11.31%) |
Jul 8, 2026 15w ago | Insider Cluster | $13.35 $13.70 | ▲ +2.62% | ▲ +2.75% | $11.84 (−11.31%) |
Jul 8, 2026 15w ago | Insider Cluster | $13.35 $13.70 | ▲ +2.62% | ▲ +2.75% | $11.84 (−11.31%) |
Jun 29, 2026 16w ago | Insider Cluster | $11.79 $13.29 | ▲ +12.72% | ▲ +12.12% | $11.84 (+0.42%) |
Jun 17, 2026 18w ago | Insider Cluster | $11.49 $11.85 | ▲ +3.13% | ▲ +4.80% | $11.84 (+3.05%) |
Jun 15, 2026 18w ago | Insider Cluster | $11.58 $11.71 | ▲ +1.12% | ▲ +3.35% | $11.84 (+2.25%) |
Jun 8, 2026 19w ago | 8-K | $10.87 $11.18 | ▼ −2.85% | ▼ −0.44% | $11.84 (−8.92%) |
May 29, 2026 21w ago | 3 | $10.89 $10.22 | ▼ −6.15% | ▼ −3.40% | $11.84 (+8.72%) |
US Market Status
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