Avocado producer Calavo jumps on Mission Produce acquisition; AVO shares slump

Shares of avocado producer Calavo Growers CVGW.O gap up early Thurs after news of acquisition by its rival Mission Produce AVO.O, while AVO shares drop sharply

CVGW shares rise as much as 10.9% to $25 and last up 6.8% at $24.12 in early trading

AVO's stock down 13.1% at $11.04, after falling as low as $10.37, lowest levels since early Jun

In deal announced late Weds, CVGW shareholders will receive $27/sh, comprising $14.85 in cash and about 0.98 shares of AVO for each CVGW share

Transaction, which values CVGW at total enterprise value of approx $430 mln, represents 19.6% premium to CVGW last sale of $22.58 on Weds

Upon deal closing, AVO shareholders expected to own about 80.3% of combined firm and CVGW shareholders anticipated to own roughly 19.7%

Both companies' boards have approved the transaction, which is on track to close by end of Aug

AVO CEO John Pawlowski slated to serve as chief of the combined company, and to be based in AVO's Oxnard, California headquarters

CVGW shares had lost about 7% over the past year through Weds for about $400 mln market cap

Co in Jun said it had received an unsolicited proposal of $32/sh, without disclosing who made the offer at the time