Calavo Growers explores sale of Fresh Cut Business to F&S Fresh Foods

Calavo Growers announced that it is exploring a sale of its Fresh Cut Business to F&S Fresh Foods. Highlights of the contemplated transaction include: total transaction value of approximately $100M, subject to customary adjustments; significant reduction to Calavo’s post-transaction SG&A; transaction closing anticipated in second fiscal quarter of 2024; expected use of proceeds includes debt reduction, growing our core business and returning cash to shareholders. There can be no assurance that a definitive agreement will result from the discussions with F&S Fresh Foods and terms are still subject “Since I returned to Calavo as CEO in March, we have renewed our focus on our core avocado and guacamole businesses to maximize profitability, and I am pleased with the progress we have made,” said Lee E. Cole, President and CEO of Calavo Growers. “To dedicate more focus to our core and to maximize shareholder value, we have been exploring strategic alternatives for our Fresh Cut business, previously known as RFG. I am pleased to share that we have signed a non-binding letter of intent to evaluate a sale of our Fresh Cut business and some related real estate with F&S Fresh Foods, a leader in the industry and one of our long-trusted co-packing partners.”