Calavo forms new subsidiary to acquire salsa company
by | February 10, 2010
Calavo Growers Inc., a global leader in avocado marketing and an expanding provider of other fresh perishable products, announced Feb. 10 the formation of majority owned Calavo Salsa Lisa LLC and that business's acquisition of Lisa’s Salsa Co., based in St. Paul, MN.
Terms were not further disclosed.
Under the terms of the transaction, Calavo’s expansion into the growing fresh refrigerated salsa category comes through a 65 percent ownership interest in Calavo Salsa Lisa, which acquired the assets of closely held Lisa’s Salsa Co.
Calavo’s ownership position comes with an option to acquire the remaining 35 percent exercisable at any time during the next 81 months. The new entity will be integrated into Calavo’s corporate structure; Lisa’s Salsa Co. founder Lisa Nicholson will join Calavo Salsa Lisa with responsibilities that include manufacturing operations, product development and involvement in branding and marketing efforts.
The company will continue to market the current Salsa Lisa product line through the existing network of customers in the Upper Midwest. In addition, initial marketing of the Calavo Salsa Lisa brand will begin immediately and the company expects to be able to begin shipments in April to both retail and foodservice customers.
Merchandised in produce departments, the new salsa line, which will also come in a range of flavors and varieties, offers highly appealing features such as fresh, all-natural ingredients including fresh tomatoes, a long 98-day shelf life and the personal touch of a homemade recipe.