Calavo Growers, US, has announced that its Renaissance Food Group (RFG) subsidiary will acquire Simply Fresh Fruit (SFFI).
Established in 1999 in Vernon, California, SFFI has been processing and supplying fresh-cut fruits to a wide range of markets across the US.
Neither company has divulged any financial details of the acquisition.
Calavo Growers chairman, president and CEO Lee Cole said: “The purchase of Simply Fresh Fruit and its combination into the larger RFG platform makes sense on every level.
“SFFI has built an impressive business, both operationally and financially. It enables Calavo to efficiently add volume on favourable terms across existing RFG production facilities.”
SFFI primarily supplies its products to the foodservice and hospitality market segments. It generated more than $30m in revenue in its recent fiscal year.
Cole added: “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.”
The companies involved expect the deal to close in Calavo’s first half and aid growth throughout 2020.
In November 2016, Calavo Growers acquired a production facility in Riverside, California, US. It helped to improve Renaissance Food Group (RFG)’s national footprint in the business sector and serve its growing customer base across the south-western US.
