Calavo Navigates Leadership Transition and Acquisition Uncertainty

SANTA PAULA, CA – November 12, 2025

Calavo Growers, Inc., a global leader in fresh produce and value-added avocado products, is at a pivotal juncture, announcing a significant leadership transition while simultaneously grappling with a potential acquisition. Lee E. Cole, a veteran of four decades with the company, is set to retire as President and Chief Executive Officer on December 8, 2025. His successor, B. John Lindeman, a familiar figure who previously served as Calavo’s Chief Financial Officer and currently sits on its Board of Directors, will step into the top executive role. This change unfolds against the backdrop of an ongoing evaluation of a non-binding acquisition proposal that could reshape Calavo’s future.

The dual developments present both opportunities and challenges for the nearly century-old company. The return of Lindeman, known for his financial acumen and strategic insight, signals a move towards stability and decisive action at a time when the fresh produce industry is increasingly characterized by market volatility, evolving consumer demands, and the imperative for operational efficiency driven by advanced data and automation.

A New Chapter Amidst Strategic Crossroads

Lee E. Cole’s retirement marks the end of an era for Calavo. His four decades of service, culminating in his tenure as CEO, have been instrumental in shaping the company into a trusted name in fresh and prepared foods. Kathleen Holmgren, Chair of the Board of Directors, lauded Cole’s contributions, stating, “He led the company through multiple market cycles, strengthening our operational foundation and expanding our global reach. Lee’s disciplined approach and focus on performance have set a high standard for our industry.” Cole, reflecting on his time, expressed pride in the company's achievements and confidence in Lindeman’s leadership to ensure continued success.

This leadership change, however, does not occur in isolation. Since June 11, 2025, Calavo’s Board has been evaluating a non-binding, indicative proposal to acquire all outstanding shares of the company for $32.00 per share. This offer, which represented a substantial 36% premium to Calavo’s trading price at the time, has cast a long shadow of uncertainty over the company’s independent future. The strategic implications of this potential transaction, coupled with the change in executive leadership, place Calavo at a critical crossroads, demanding agile and astute navigation.

Lindeman's Return: A Known Quantity for Stability

B. John Lindeman’s appointment as President and CEO brings a blend of continuity and fresh perspective to Calavo. His previous stint as CFO from 2015 to 2020 means he is intimately familiar with the company’s financial structure, operational intricacies, and market position. Ms. Holmgren emphasized this familiarity, noting, “He knows this company well from his time as CFO and as a current Board member. John brings deep industry knowledge and strategic insight as well as significant experience in mergers and acquisitions that will serve Calavo well in advancing our strategic priorities.”

Lindeman’s most recent role as CEO of Hydrofarm Holdings Group, Inc., a leader in controlled environment agriculture, provides valuable experience in a technologically driven segment of the broader agricultural sector. While Hydrofarm faced market challenges during his tenure, Lindeman demonstrated a clear focus on operational discipline. In the third quarter of 2025, Hydrofarm, under his leadership, showed progress in cash management, achieving a $4.4 million improvement in cash used in operations and a $5.1 million improvement in free cash flow year-over-year. He also oversaw 13 consecutive quarters of selling, general, and administrative (SG&A) reductions and made strides in restructuring the product portfolio, focusing on higher-margin proprietary brands. These experiences highlight his capacity for strategic cost control and portfolio optimization—skills that will be crucial for Calavo as it seeks to enhance efficiency and profitability in a competitive landscape.

Lindeman himself expressed enthusiasm for his return, stating, “I’m honored to return to Calavo and excited to lead this talented team. With the dedication and expertise that define Calavo’s culture, we are well positioned to deepen partnerships, drive growth, and create sustainable value for our shareholders.” His M&A experience will undoubtedly be leveraged as the company considers its strategic alternatives regarding the acquisition proposal.

The Shadow of a $571 Million Proposal

The non-binding acquisition proposal, received in June, has been a significant point of discussion among investors. The offer of $32.00 per share, valuing Calavo at approximately $571 million, initially triggered a surge in the company's stock price, with shares jumping over 9.5% on the news. However, the market’s reaction since then has reflected growing skepticism. By August 2025, the stock was trading well below the proposed offer price, indicating that investors view the deal as