Financial Modeling Prep·2026-01-15 20:00Core Viewpoint - Mission Produce, Inc. is acquiring Calavo Growers, Inc. in a strategic move valued at $483 million, which is expected to reshape the avocado market landscape [1][2]. Group 1: Acquisition Details - The acquisition deal involves a cash-and-stock transaction where Calavo shareholders will receive $27 per share, consisting of $14.85 in cash and 0.97 shares of Mission for each Calavo share [2]. - The transaction is anticipated to close by the end of August 2026, with Mission shareholders expected to hold approximately 80.3% of the combined entity [2][6]. Group 2: Strategic Objectives - Mission Produce aims to expand its scale and diversify its product offerings through this acquisition, enhancing its supply chain across Mexico and California [3]. - The acquisition marks Mission's entry into the high-growth prepared food segment, complementing its existing avocado business [3]. Group 3: Expected Synergies and Value - The companies are targeting $25 million in synergies by the close of the transaction, with further cost synergies expected within 18 months post-close [4]. - This move will diversify Mission's portfolio across fresh produce, better serving customers and grower partners worldwide [4]. Group 4: Market Reaction - Despite the strategic nature of the acquisition, Mission Produce's stock price has decreased to $11.15, down 12.20% from its previous value [5][6]. - The stock has fluctuated between $10.37 and $11.75 during the day, with a market capitalization of approximately $787.4 million [5].