Calavo Growers to acquire fresh-cut fruit company
Calavo Growers' subsidiary Renaissance Food Group (RFG) is to acquire Simply Fresh Fruit (SFFI), a privately held processor and supplier of a broad line of fresh-cut fruit.
Calavo Growers, a global avocado-industry leader and expanding provider of value-added fresh food, expects the deal to close in its first financial half. Further transaction terms were not disclosed.
Founded in 1999 and based in Vernon, California, SFFI principally serves the foodservice and hospitality markets, generating more than US$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 purchase of Simply Fresh Fruit and its combination into the larger RFG platform makes sense on every level," said Lee E. Cole, chairman, president and CEO of Calavo Growers.
"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.”