Calavo Growers Inc (NASDAQ–GS: CVGW) has signed an agreement to acquire Renaissance Food Group LLC, a closely held fresh-food company that produces, markets, and distributes a portfolio of healthy-lifestyle retail products nationally.
The transaction, which is expected to close June 1, 2011, is for a combination of cash and stock, including earn-out payments based on financial performance. Terms were not further disclosed. The newly acquired company started in 2003 and experienced 54% compound annual growth in sales from inception to 2010. Current-year revenues are projected to exceed $100 million.
Rancho Cordova CA-based RFG operates six processing facilities nationally, of which those in Sacramento CA and Houston TX are company-owned. It has 400 employees and serves major retailers throughout the United States. RFG will operate as a wholly owned subsidiary of the Calavo Foods business unit.
Lee E Cole, Calavo’s chairman, president, and chief executive officer, said, “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.”
RFG was founded by Jim Catchot, Ken Catchot, and Jim Gibson. Jim Catchot, RFG’s president, said, “We are truly excited to join forces with a company of Calavo’s quality and stature, and are convinced that their industry presence, financial strength, outstanding customer list, and overall produce expertise will be invaluable in furthering the rapid expansion of our business.”
RFG has an array of retail product lines for produce, deli, meat, and foodservice departments. Produce lines include fresh-cut fruit, ready-to-eat vegetables and Chef Essentials recipe-ready vegetables such as Asparagus Sauté and Savory Butternut Squash. Deli lines include ready-to-eat “grab-n-go” salads, healthy fresh snacks, deli-style sandwiches, wraps, and fresh party trays.
Cole said RFG also will be able to draw upon its new parent company’s fresh produce sourcing capabilities, as well as Calavo’s national Value Added Depots for ripening needs.
Founded in 1924, Calavo markets and distributes avocados, processed avocados, and other perishable products, serving food distributors, produce wholesalers, supermarkets, and restaurants worldwide.
