Calavo Growers Inc, provider of avocados and other fresh perishable products, announced the formation of majority-owned Calavo Salsa Lisa LLC, and that business’s acquisition of Lisa’s Salsa Company of St Paul MN.
Under terms of the transaction, Calavo’s expansion into the fresh refrigerated salsa category comes through a 65% ownership interest in Calavo Salsa Lisa, which acquired the assets of closely held Lisa’s Salsa Co. Calavo’s ownership position comes with an option to acquire the remaining 35% exercisable at any time during the next 81 months.
The new entity will be integrated into Calavo’s corporate structure; Lisa’s Salsa Co founder Lisa Nicholson joins Calavo Salsa Lisa with responsibilities that include manufacturing operations, product development, and injecting the brand and its marketing efforts with a Salsa Lisa culture. Terms were not further disclosed.
The company will continue to market the current Salsa Lisa product line through the existing network of customers in the upper Midwest. In addition, initial marketing of the Calavo Salsa Lisa brand will begin immediately, and the company expects to be able to begin shipments in April to both retail and foodservice customers.
Lee E Cole, Calavo’s chairman, president, and chief executive officer, said, “We are very pleased to launch Calavo Salsa Lisa with the goal of leveraging our nationwide infrastructure and distribution channels to build a powerful market position in refrigerated salsa, which is a substantial and growing category.”
Calavo Salsa Lisa will be produced in St Paul at the former Lisa’s Salsa Co’s 8,000-square-foot facility, which Calavo Salsa Lisa will expand to 10,500 square feet. The company believes that the facility has ample unused capacity to support the planned national rollout.
