Calavo Growers announced today (9 February) that it has struck a deal to buy Lisa’s Salsa Co. for an undisclosed sum.
The avocado and guacamole maker framed the deal by buying the salsa firm through a newly-formed entity Calavo Salsa Lisa.
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Calavo will own a 65% stake in Calavo Salsa Lisa and has an option to buy the rest of the business by the end of 2016.
Lisa’s Salsa Co. founder Lisa Nicholson will join Calavo Salsa Lisa and oversee manufacturing operations, product development and marketing.
Calavo chairman, president and CEO Lee Cole said the company would look to use its national distribution network to further build the salsa business.
“Lisa Nicholson, who founded and led her company for the past fifteen years, has developed a truly outstanding product, which we believe has tremendous potential for future growth on a national scale,” Cole said.
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By GlobalData“Being able to market and ship high-end, great tasting guacamole, refrigerated salsa and tortilla chips together is a win-win-win for consumers, our customers and Calavo’s profit-margins.”
Nicholson said Calavo brought “tremendous strengths and resources to the table”.
She added: “I am very pleased to be part of the Calavo team to reach our ambitious targets for profitable growth. We believe this transaction is structured to be a ’game changer’ for both parties.”
