Calavo Growers, the Nasdaq-listed fresh produce business, has received a takeover approach from an unidentified suitor.
The Santa Paula, California-based supplier of avocados, tomatoes, papayas and guacamole, said the “non-binding, indicative proposal” has been put on the table at $32 a share.
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Calavo Growers added in a statement yesterday (11 June) the takeover offer consists of shares in the interested party and a cash portion. The proposal is subject to due diligence and financing, the company said.
“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,” it noted. However, the board of Calavo Growers is “reviewing” the takeover proposal in consultations with its legal and financial advisors.
Calavo Growers’ shares closed up 1.7% at $23.58 on the Nasdaq exchange yesterday, trimming a decline this year to 7.5%.
Founded in 1924, the business markets its fresh fruit range under the Calavo brand and also supplies retailers with private label. Other customers include club stores, wholesalers and the foodservice channel.
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By GlobalDataAs well as guacamole, it also offers valued-added products such as salsas and dips.
Led by president and CEO Lee Cole, the business sources avocados from USDA-certified growers in Mexico, Peru, Colombia, Chile, and the Dominican Republic, according to Calavo Growers’ 2024 annual report. It operates a facility in Uruapan, Mexico, as well as the site in California.
Earlier this week, the company issued its second-quarter results.
Sales climbed 3.3% to $190.5m and were up 10.6% for the year so far at $344.9m.
For the quarter to 30 April, adjusted EBITDA dropped 17.3% to $11.4m but increased 22.4% over the six months to $20.7m.
Net income rose 13% to $6.9m for the quarter and turned to a year-to-date profit of $11.3m compared to a $0.2m loss a year earlier.
Diluted EPS came in at $0.38 versus $0.36, and $0.63 against $0.22, for the quarter and year so far, respectively.
