Calavo Growers Receives Takeover Offer from Unidentified Suitor
Calavo Growers, a Nasdaq-listed fresh produce business based in Santa Paula, California, has recently received a takeover approach from an unidentified suitor. The proposal, which is non-binding and indicative, values the company at $32 per share. This offer includes a combination of shares in the interested party and a cash component, subject to due diligence and financing.
Although the company stated that the proposal may or may not lead to a transaction, it has disclosed that its board is currently reviewing the offer in consultation with legal and financial advisors. Calavo Growers emphasized that further updates will only be provided if necessary.
Founded in 1924, Calavo Growers markets a variety of fresh fruits under its own brand and supplies retailers with private-label products. In addition to avocados, tomatoes, papayas, and guacamole, the company also offers value-added items such as salsas and dips.
Led by president and CEO Lee Cole, Calavo Growers sources avocados from USDA-certified growers in several countries, including Mexico, Peru, Colombia, Chile, and the Dominican Republic. The company operates facilities in Mexico and California to support its operations.
In its recent second-quarter results, Calavo Growers reported a 3.3% increase in sales to $190.5 million, with year-to-date sales reaching $344.9 million. Adjusted EBITDA for the quarter declined by 17.3% to $11.4 million but showed a 22.4% increase over the six-month period to $20.7 million.
Net income for the quarter rose by 13% to $6.9 million and turned into a year-to-date profit of $11.3 million compared to a $0.2 million loss in the previous year. Diluted EPS for the quarter and year so far were reported at $0.38 and $0.63, respectively.
Calavo Growers’ shares closed at $23.58 on the Nasdaq exchange, reflecting a 1.7% increase. The company’s stock has experienced a 7.5% decline so far this year.
The potential takeover bid has sparked interest in the market, and investors are closely monitoring the situation to see how it unfolds. For more information and updates on this developing story, please visit Just Food.
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