Avocado producer Calavo jumps on Mission Produce acquisition; AVO shares slump

Mission Produce

15/01/2026 14:51

Updates stock activity to market open

** Shares of avocado producer Calavo Growers CVGW.O gap up early Thurs after news of acquisition by its rival Mission Produce AVO.O, while AVO shares drop sharply

** CVGW shares rise as much as 10.9% to $25 and last up 6.8% at $24.12 in early trading

** AVO's stock down 13.1% at $11.04, after falling as low as $10.37, lowest levels since early Jun

** In deal announced late Weds, CVGW shareholders will receive $27/sh, comprising $14.85 in cash and about 0.98 shares of AVO for each CVGW share

** Transaction, which values CVGW at total enterprise value of approx $430 mln, represents 19.6% premium to CVGW last sale of $22.58 on Weds

** Upon deal closing, AVO shareholders expected to own about 80.3% of combined firm and CVGW shareholders anticipated to own roughly 19.7%

** Both companies' boards have approved the transaction, which is on track to close by end of Aug

** AVO CEO John Pawlowski slated to serve as chief of the combined company, and to be based in AVO's Oxnard, California headquarters

** CVGW shares had lost about 7% over the past year through Weds for about $400 mln market cap

** Co in Jun said it had received an unsolicited proposal of $32/sh, without disclosing who made the offer at the time

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))