Calavo Growers Inc. (NASDAQ:CVGW) shares jumped 12.93% in after-hours trading to $25.50 following the release of its results and the announcement of a merger agreement with California-based Mission Produce Inc. (NASDAQ:AVO).
Mission Produce Merger Terms
Calavo Growers entered a definitive merger agreement in which Mission Produce will acquire the company for $27 per share, based on Mission’s 30-trading-day volume-weighted average price ending Jan. 13.
The deal includes $14.85 in cash and 0.9790 shares of Mission for each Calavo share.
According to the company’s press release, once the deal closes, Mission Produce shareholders will hold about 80.3% of the combined company, while Calavo Growers shareholders will own roughly 19.7%.
The international food company anticipates $25 million in cost synergies from the transaction and expects it to close by August, subject to regulatory approvals and shareholder votes.
Fiscal Year 2025 Results
For the full fiscal year ended October 31, 2025, Calavo reported net income from continuing operations of $20 million, up 192% from $6.8 million in fiscal 2024.
Adjusted net income from continuing operations increased 42% to $28.9 million, or $1.62 per diluted share.
Adjusted earnings before interest, taxes, depreciation, and amortization from continuing operations rose 12% to $40.8 million from $36.5 million.
Total net sales decreased to $648.4 million from $661.5 million.
Fourth Quarter Performance
According to the company, Calavo Growers’ fourth-quarter net sales fell to $124.7 million from $170 million, while net income from continuing operations rose to $3.8 million, compared with a $2.5 million loss in the same quarter last year.
Trading Metrics, Technical Analysis
Calavo’s Relative Strength Index (RSI) stands at 64.92.
Over the past 12 months, Calavo Growers Inc.’s stock has risen 0.27%, reflecting a modest upward trend and indicating that the longer-term performance remains slightly positive.
With a market capitalization of $403.13 million, the company’s shares have traded between a 52-week low of $18.40 and a 52-week high of $28.72.
Price Action: According to Benzinga Pro data, Calavo Growers closed at $22.58, up 1.71%.
The stock is currently positioned at approximately 40.54% of its 52-week range, indicating it is closer to the lower end than the upper end.
Benzinga’s Edge Stock Rankings indicate CVGW has a Value score of 83.39.
Photo: Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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