Calavo Growers, Inc., a global avocado industry leader and expanding provider of value-added fresh food, announced on November 3 that it has completed the purchase of a production facility in Riverside, Calif. The newly acquired production facility will further enhance the national footprint for the company’s Renaissance Food Group, LLC (RFG) business segment, and position the segment to serve its growing customer base across the southwestern United States.
The acquired facility, which totals approximately 128,000 square feet situated on about 11 acres, was previously owned and operated by affiliates of the former Fresh & Easy Neighborhood Markets.
The company described the new facility as nearly “turnkey,” which will allow RFG to quickly expand capacity and meet growing demand among current and new customers for its fresh, value-added packaged fruit and vegetables, ready-to-eat salads and prepared foods offerings. Its physical location, in Southern California’s burgeoning Inland Empire region, is highly sought after for its prime interstate and rail access.
Calavo Chairman and Chief Executive Officer, Lee E. Cole stated: “This best-in-class facility aligns with and extends our company’s strategic growth initiatives to build a leading market position in the refrigerated fresh packaged foods category. The new facility enables us to satisfy demand from several key accounts in Southern California, while providing the platform for deeper market penetration across the southwest, including southern Nevada, Arizona and Utah. Quick-turn, ‘just-in-time’ order fulfillment is a cornerstone of RFG’s operating success, along with the outstanding depth and breadth of its product portfolio.”
Total transaction consideration approximated $19.4 million, according to the company. Calavo reported that it purchased the facility through a variable interest entity created to effect a potential like-kind exchange under Section 1031 of the Internal Revenue Code.
For more information:
Lee Cole
Calavo Growers, Inc.
Tel: 805-525-1245