Calavo Growers chief executive Lee Cole said today (26 May) that the avocado processor’s planned acquisition of Renaissance Food Group would “transform” his company.

Cole said the acquisition of RFG, a privately-owned, California-based fresh food group, would help Calavo grow and enable it to provide its retail customers with more products.

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“Calavo invested a considerable amount of time and energy over the years identifying the right sizeable transaction,” Cole said. “I believe we found the perfect company that is ideally positioned in a significant growth category, comes with a strong brand and allows us to effectively leverage our blue-chip customer base by selling more products to them.”

Privately-owned RFG, based in California, sells products including fruit, vegetables, deli lines and sandwiches. Revenue in its current financial year is expected to be over US$100m. In the year to the end of October, Calavo’s turnover was $398.4m.

The acquisition of RFG, Cole said, would be “immediately accretive” to earnings. “Our acquisition of Renaissance Food Group and its outstanding Garden Highway brand represents a transformational step forward for Calavo. RFG will be a key growth driver of our company’s expansion in the fresh refrigerated packaged goods category in both the retail produce and deli departments,” he added.

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RFG was founded in 2003 and Jim Catchot, one of the group’s founders and its president, said he was “truly excited” to join forces with a company of “Calavo’s quality and stature”.

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The deal, struck for an undisclosed sum, is expected to close next week.