CVGW - Calavo Growers Evaluating Potential Sale of Its Fresh Cut Business (formerly RFG); Declares Quarterly Dividend | Benzinga
SANTA PAULA, Calif., Jan. 16, 2024 (GLOBE NEWSWIRE) -- Calavo Growers, Inc. (NASDAQ:CVGW), a global avocado-industry leader and provider of convenient, ready-to-eat fresh food, today announced that it is exploring a sale of its Fresh Cut Business (formerly "RFG") to F&S Fresh Foods.
"Since I returned to Calavo as CEO in March, we have renewed our focus on our core avocado and guacamole businesses to maximize profitability, and I am pleased with the progress we have made," said Lee E. Cole, President and Chief Executive Officer of Calavo Growers, Inc. "To dedicate more focus to our core and to maximize shareholder value, we have been exploring strategic alternatives for our Fresh Cut business, previously known as RFG. I am pleased to share that we have signed a non-binding letter of intent to evaluate a sale of our Fresh Cut business and some related real estate with F&S Fresh Foods, a leader in the industry and one of our long-trusted co-packing partners."
Highlights of the contemplated transaction include:
- Total transaction value of approximately $100 million, subject to customary adjustments
- Significant reduction to Calavo's post-transaction SG&A
- Transaction closing anticipated in second fiscal quarter of 2024
- Expected use of proceeds includes debt reduction, growing our core business and returning cash to shareholders
There can be no assurance that a definitive agreement will result from the discussions with F&S Fresh Foods and terms are still subject to negotiation. The Company will provide more information when and if a definitive agreement is executed.
Dividend
The Company also announced today that its Board of Directors declared a quarterly cash dividend on its common stock of $0.10 per share. The dividend will be paid on January 31, ...