Last updated on September 13th, 2022 at 03:05 pm
Calavo Growers Inc.’s Renaissance Food Group (RFG) subsidiary has signed a definitive agreement to acquire SFFI Co. Inc. doing business as Simply Fresh Fruit (SFFI).
Founded in 1999 and based in Vernon, California, 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.
“The purchase of Simply Fresh Fruit and its combination into the larger RFG platform makes sense on every level,” said Chairman President and CEO Lee E. Cole. “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.”
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 cmpany’s Fresh segment procures and markets fresh avocados and select other fresh produce, including tomatoes and papayas. The 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.
