Calavo Growers Inc. has signed an agreement to acquire Renaissance Food Group LLC, which operates six fresh food processing facilities across the country, for an undisclosed amount.
Calavo of Santa Paula markets avocados, avocado products, refrigerated fresh salsa and guacamole hummus. It said Thursday that Rancho Cordova-based Renaissance Food has the potential to significantly expand its business. Renaissance Food’s plants, which include company-owned facilities in Sacramento and Houston, make and distribute products for retail and institutional sale, such as deli-style sandwiches, grab-and-go salads and party trays.
Renaissance Food’s fiscal 2011 revenues are expected to exceed $100 million, said Calavo, which had $422 million in revenue last year.
“Our acquisition of Renaissance Food Group and its outstanding Garden Highway brand represents a transformational step forward for Calavo,” Chief Executive Lee E. Cole said in a statement. “It 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.”
Renaissance Food, which has 400 employees and also markets the Chef Essentials food brand, will operate as a wholly owned subsidiary of the Calavo Foods business unit, said Calavo, which has 1,157 employees. Shares were up 88 cents, or 4.5 percent, to $20.40 in midday trading on the Nasdaq.
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