Calavo Growers, Inc. to Acquire Simply Fresh Fruit

Transaction Highlights:

• ‘Pure-Play’ Producer and Supplier of Fresh-Cut Fruit Will Be Integrated into Company’s Renaissance Food Group (RFG) Segment
• Simply Fresh Fruit’s Existing Relationships in Foodservice and Hospitality Industries Augment RFG’s Retail-Grocery Strength
• Calavo Expects Deal to Be Accretive to Fiscal 2020 Operating Results

SANTA PAULA, Calif., Jan. 21, 2020 (GLOBE NEWSWIRE) -- Calavo Growers, Inc. (Nasdaq-GS: CVGW), a global avocado-industry leader and expanding provider of value-added fresh food, today announced that its Renaissance Food Group (RFG) subsidiary has signed a definitive agreement to acquire SFFI Company, Inc. doing business as Simply Fresh Fruit (SFFI).

Founded in 1999 and based in Vernon, Calif., privately held SFFI is a processor and supplier of a broad line of fresh-cut fruit, principally serving the foodservice and hospitality markets that generated more than $30 million in annual sales in its most recent fiscal year. Its focus in those industries is anticipated to be highly complementary to the retail-grocery expertise of Calavo’s RFG business segment.

The transaction, which is subject to customary closing conditions, is expected to close in Calavo’s first half and to be accretive to the company’s fiscal 2020 adjusted earnings per share. Further transaction terms were not disclosed.

Chairman, President and Chief Executive Officer Lee E. Cole stated: “The purchase of Simply Fresh Fruit and its combination into the larger RFG platform makes sense on every level. SFFI has built an impressive business, both operationally and financially. It enables Calavo to efficiently add volume on favorable terms across existing RFG production facilities. With its concentration in the foodservice and hospitality industries, SFFI provides us with a profitable, ‘pure-play’ vehicle for accelerating the company’s growth in these additional categories, and expands RFG’s total potential addressable market for its core fresh-cut fruit business. We look forward to SFFI becoming part of the Calavo family.”

About Calavo Growers, Inc.
Calavo Growers, Inc. is a global avocado-industry leader and an expanding provider of value-added fresh food serving retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers worldwide. The Company’s Fresh segment procures and markets fresh avocados and select other fresh produce, including tomatoes and papayas. The Renaissance Food Group (RFG) segment creates, markets and distributes a portfolio of healthy, fresh foods, including fresh-cut fruit, fresh-cut vegetables and prepared foods. The Foods segment manufactures and distributes guacamole and salsa. Founded in 1924, Calavo’s fresh food products are sold under the respected Calavo brand name as well as Garden Highway, Chef Essentials and a variety of private label and store brands.