Mission Produce (AVO) M&A announcement summary

Deal rationale and strategic fit

• Combines two leading fresh produce companies to create a premier North American avocado and fresh produce platform with global reach, expanding into tomatoes, papayas, and prepared foods.

• Entry into the high-growth prepared foods and guacamole segments, complementing value-added avocado business and addressing consumer demand for fresh, convenient options.

• Strengthens vertical integration across sourcing, packing, ripening, logistics, and distribution, supporting sustainable growth and operational excellence.

• Enhances year-round supply reliability, mitigates seasonal troughs, and improves sourcing security through combined grower networks.

• Supports growth in core U.S. and international markets, leveraging a robust global network and expanded product basket.

Financial terms and conditions

• Calavo shareholders receive $27 per share: $14.85 in cash and 0.9790 Mission shares per Calavo share, with consideration 55% cash and 45% stock.

• Transaction values Calavo at approximately $430 million, a 26% premium to its 30-day average price.

• Mission shareholders will own about 80.3% and Calavo shareholders about 19.7% of the combined company.

• Combined pro forma FY2025 net sales estimated at ~$2 billion and Adjusted EBITDA at $176 million.

• Cash portion funded by amended Mission Produce debt facilities, not contingent on additional financing.

Synergies and expected cost savings

• Identified $25 million in annualized cost synergies within 18 months post-close, with meaningful upside potential.

• Synergies expected from SG&A optimization, streamlining organization, common distribution hubs, and enhanced sourcing best practices.

• Total cost to achieve synergies estimated at 1.25x run-rate, realized within two years.

• Synergies anticipated to drive EBITDA growth and cash flow generation.

• Additional upside expected from revenue synergies and operational efficiencies.