Benzinga·2026-01-15 09:34Core Viewpoint - Calavo Growers Inc. shares surged 12.93% to $25.50 after announcing a merger agreement with Mission Produce Inc. and releasing its fiscal results [1] Merger Agreement - Calavo Growers has entered a definitive merger agreement where Mission Produce will acquire the company for $27 per share, consisting of $14.85 in cash and 0.9790 shares of Mission for each Calavo share [2] - Post-merger, Mission Produce shareholders will own approximately 80.3% of the combined entity, while Calavo shareholders will hold about 19.7% [2] Cost Synergies and Timeline - The merger is expected to generate $25 million in cost synergies and is anticipated to close by August, pending regulatory approvals and shareholder votes [3] Fiscal Year 2025 Results - For the fiscal year ending October 31, 2025, Calavo reported a net income from continuing operations of $20 million, a 192% increase from $6.8 million in fiscal 2024 [4] - Adjusted net income from continuing operations rose 42% to $28.9 million, equating to $1.62 per diluted share [4] - Adjusted EBITDA from continuing operations increased 12% to $40.8 million from $36.5 million [4] - Total net sales decreased to $648.4 million from $661.5 million [4] Fourth Quarter Performance - In the fourth quarter, Calavo's net sales fell to $124.7 million from $170 million, while net income from continuing operations increased to $3.8 million, compared to a loss of $2.5 million in the same quarter last year [5] Trading Metrics and Technical Analysis - Calavo's Relative Strength Index (RSI) is at 64.92, indicating a modest upward trend over the past 12 months, with a stock price increase of 0.27% [6] - The company's market capitalization is $403.13 million, with shares trading between a 52-week low of $18.40 and a high of $28.72 [6] - Currently, the stock is positioned at approximately 40.54% of its 52-week range, closer to the lower end [7]