Item 2.05. Costs Associated with Exit or Disposal Activities. As part of Mission Produce, Inc.’s (the “Company”) ongoing efforts to review and optimize its combined distribution network and operations following the Company’s acquisition of Calavo Growers, Inc.…
Mission Produce (NASDAQ: AVO) is a global leader in the worldwide fresh produce business, delivering fresh Hass avocados and mangos to retail, wholesale and foodservice customers in over 25 countries. Since 1983, Mission Produce has been sourcing, producing and distributing fresh Hass avocados, and today also markets mangos and grows blueberries as part of its diversified portfolio. The Company is vertically integrated and owns five state-of-the-art packing facilities across the U.S., Mexico, Peru, and Guatemala. With sourcing capabilities across 20+ premium growing regions, the company provides a year-round supply of premium fresh fruit. Mission’s global distribution network includes strategically positioned forward distribution centers across key markets throughout North America, China, Europe, and the UK, offering value-added services such as ripening, bagging, custom packing and logistical management. For more information, please visit www.missionproduce.com.
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Item 2.05Item 2.05 - Costs with Exit or Disposal
Item 2.05. Costs Associated with Exit or Disposal Activities.
As part of Mission Produce, Inc.’s (the “Company”) ongoing efforts to review and optimize its combined distribution network and operations following the Company’s acquisition of Calavo Growers, Inc. (“Calavo”), which was completed on May 28, 2026, the Company has decided to close three of its facilities across the Company’s distribution network and to implement workforce reductions related to the facility closures and the consolidation of certain operations in California. Specifically, on September 11, 2026, the Company determined it will: (1) consolidate its operations in Swedesboro, New Jersey into one facility; (2) combine its Dallas-area facilities into one facility in Garland, Texas; and (3) close the Calavo facility in Jacksonville, Florida.
The Company expects to incur costs associated with these actions which are consistent with the integration costs anticipated as part of the Company’s post- acquisition integration plans. These costs are expected to include, among other things, employee severance and related benefits costs totaling approximately $1.4 million, accelerated depreciation of approximately $8.6 million, estimated asset retirement obligations totaling approximately $5.4 million, and lease termination costs which are not determinable at this time. The severance and related benefits and the asset retirement obligations are expected to be cash charges, and the lease termination costs may also include cash charges. The Company is not able to make a good faith estimate of the total amount or range of amounts of these costs, or the total amount or range of amounts of future cash charges, at this time. The Company expects to disclose such amounts in future Securities and Exchange Commission filings after it makes a determination of such estimates or such information becomes available.
