Calavo Growers, a Nasdaq-listed leader in fresh produce, has received a takeover approach from an unidentified suitor.
Based in Santa Paula, California, this supplier of avocados, tomatoes, papayas, and guacamole revealed that a “non-binding, indicative proposal” has been made at $32 per share.
Calavo Growers confirmed in an official statement dated 11 June that the proposal includes shares from the interested party along with a cash component. The offer is contingent upon due diligence and financing, the company noted.
The statement added, “This non-binding proposal may or may not lead to a transaction, and the company does not intend to comment or update further unless warranted.” However, Calavo Growers’ board is currently “reviewing” the proposal in consultation with legal and financial advisors.
Recently, Calavo Growers’ shares experienced a 1.7% increase, closing at $23.58 on the Nasdaq, reducing a year-to-date decline to 7.5%.
Founded in 1924, Calavo markets its fresh fruit range under the Calavo brand while also supplying private label products. Its clientele includes retailers, wholesalers, and the foodservice sector.
In addition to guacamole, the company provides value-added products such as salsas and dips.
Led by President and CEO Lee Cole, Calavo sources avocados from USDA-certified growers in Mexico, Peru, Colombia, Chile, and the Dominican Republic. According to Calavo Growers’ 2024 annual report, the company operates a facility in Uruapan, Mexico, alongside its California site.
This week, Calavo announced its second-quarter results, showcasing a 3.3% increase in sales, reaching $190.5 million. The year-to-date sales rose 10.6%, now totaling $344.9 million.
For the quarter ending on 30 April, adjusted EBITDA fell by 17.3% to $11.4 million but experienced a 22.4% increase over the first six months, totaling $20.7 million.
Net income rose by 13% to $6.9 million for the quarter, turning to a year-to-date profit of $11.3 million—an improvement from a $0.2 million loss reported last year.
Diluted EPS registered at $0.38 versus $0.36 for the quarter, and $0.63 compared to $0.22 for the year-to-date.
