<SEC-DOCUMENT>0000950123-11-057302.txt : 20110607
<SEC-HEADER>0000950123-11-057302.hdr.sgml : 20110607
<ACCEPTANCE-DATETIME>20110607170202
ACCESSION NUMBER:		0000950123-11-057302
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20110601
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Completion of Acquisition or Disposition of Assets
ITEM INFORMATION:		Unregistered Sales of Equity Securities
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20110607
DATE AS OF CHANGE:		20110607

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CALAVO GROWERS INC
		CENTRAL INDEX KEY:			0001133470
		STANDARD INDUSTRIAL CLASSIFICATION:	AGRICULTURE SERVICES [0700]
		IRS NUMBER:				330945304
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-33385
		FILM NUMBER:		11899081

	BUSINESS ADDRESS:	
		STREET 1:		2530 RED HILL AVE.
		CITY:			SANTA ANA
		STATE:			CA
		ZIP:			92705
		BUSINESS PHONE:		9098334200
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>v59686e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT PURSUANT<BR>
TO SECTION 13 OR 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B>
</DIV>
<!-- xbrl,dc -->
<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of report (Date of earliest event reported): June&nbsp;1, 2011</B></DIV>
<!-- /xbrl,dc -->
<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>CALAVO GROWERS, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in Charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>California</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>000-33385</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>33-0945304</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or Other <BR>
Jurisdiction of <BR>
Incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission File<BR>
Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer<BR>
Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">
<DIV style="margin-top: 1px"><FONT style="border-bottom: 1px solid #000000"><B>1141-A Cummings Road, Santa Paula, California 93060</B></FONT></DIV>
(Address of Principal Executive Offices) (Zip Code)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV style="margin-top: 1px"><FONT style="border-top: 1px solid #000000"> (Former Name or Former Address, if Changed Since Last Report)</FONT></DIV></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV style="margin-top: 1px"><FONT style="border-top: 1px solid #000000">Registrant&#146;s telephone number, including area code: <B>(805)&nbsp;525-1245</B></FONT></DIV></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#111;</FONT> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>









<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!--TOC-->
<!--/TOC-->






<!-- link1 "Item&nbsp;1.01 Entry into a Material Definitive Agreement" -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement.</B>
</DIV>

<!-- link1 "Item&nbsp;2.01 Completion of Acquisition or Disposition of Assets" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2.01 Completion of Acquisition or Disposition of Assets.</B>
</DIV>

<!-- link1 "Item&nbsp;3.02 Unregistered Sales of Equity Securities" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;3.02 Unregistered Sales of Equity Securities.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Completion of Acquisition of Renaissance Food Group, LLC</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Summary</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;1, 2011, Calavo Growers, Inc. (&#147;Calavo&#148;, &#147;our&#148; or &#147;we&#148;), completed the previously
announced acquisition (the &#147;Acquisition&#148;) of Renaissance Food Group, LLC (&#147;RFG&#148;). The material
terms of the Acquisition were previously disclosed in our Current Report on Form 8-K filed with the
Securities and Exchange Commission (the &#147;Commission&#148;) on June&nbsp;1, 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Agreement and Plan of Merger dated May&nbsp;25, 2011 (the &#147;Acquisition
Agreement&#148;), by and among Calavo, CG Mergersub LLC, RFG and Liberty Fresh Foods, LLC, Kenneth
Catchot, Cut Fruit, LLC, James Catchot, James Gibson, Jose O. Castillo, Donald L. Johnson and RFG
Nominee Trust (collectively, the &#147;Sellers&#148;), we acquired a 100&nbsp;percent ownership interest in RFG.
RFG is a fresh-food company that produces, markets, and distributes nationally a portfolio of
healthy, high quality lifestyle products for consumers via the retail channel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At closing, we paid the Sellers approximately $16&nbsp;million, payable in a combination of cash
and shares of unregistered Calavo common stock, consisting of $15&nbsp;million in cash and 43,000 shares
of unregistered Calavo common stock, excluding certain adjustments based on RFG&#146;s financial
condition at closing, as described below. In addition, if RFG attains specified financial goals
for certain 12-month periods prior to the fifth anniversary of the closing, we have agreed to pay
the Sellers up to an additional approximately $84&nbsp;million in earn-out consideration, payable in
cash and shares of unregistered Calavo common stock, as described below in greater detail. As a
result, if the maximum earn-out consideration is earned, the total consideration payable to the
Sellers pursuant to the Acquisition Agreement will be approximately $100&nbsp;million from the time of
closing to the end of the five-year earn-out period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Acquisition Agreement contains covenants, representations and warranties of Calavo and RFG
that are customary for transactions of this type. Prior to entering into the Acquisition
Agreement, and other than with respect to the Acquisition Agreement, neither we, nor any of our
officers, directors, or affiliates had any material relationship with RFG or the Sellers. The
following description of the Acquisition Agreement is not intended to be complete and is qualified
in its entirety by the text of the Acquisition Agreement, which was filed as Exhibit&nbsp;2.1 to our
Current Report on Form 8-K, as filed with the Commission on June&nbsp;1, 2011, and is incorporated
herein by reference. Pursuant to the terms and conditions of Regulation&nbsp;S-X, neither financial
statements of RFG, nor pro forma financial statements are required to be filed under Item&nbsp;9.01 of
Form 8-K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Consideration at close</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On the closing date, we paid $15&nbsp;million in cash and issued 43,000 shares of unregistered
Calavo common stock to the Sellers, excluding adjustments based on RFG&#146;s financial condition at
closing, which at closing were estimated to result in a purchase price reduction of approximately
$565,000. All of the
stock consideration will be held in escrow as security for potential closing adjustments and
indemnification obligations of the Sellers.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Earn-out Consideration</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>1</I><SUP style="FONT-size: 85%; vertical-align: text-top"><I>st</I></SUP><I> earn-out payment</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If RFG&#146;s earnings before interest, taxes, depreciation and amortization (&#147;EBITDA&#148;) for any
12-month period commencing after the closing date and ending prior to the fifth anniversary of the
closing date, is equal to or greater than $8.0&nbsp;million, and RFG has concurrently reached a
corresponding revenue achievement, we have agreed to pay the Sellers $5&nbsp;million in cash and to
issue to the Sellers 827,000 shares of unregistered Calavo common stock, representing total
consideration of approximately $24&nbsp;million. This represents the maximum that can be awarded
pursuant to the 1<SUP style="FONT-size: 85%; vertical-align: text-top">st</SUP> earn-out payment. In the event that the maximum EBITDA and revenue
achievements have not been reached within five years after the closing date, but RFG&#146;s 12-month
EBITDA during such period equals or exceeds $6&nbsp;million and RFG has concurrently reached a
corresponding revenue achievement, a sliding-scale, as defined, will be used to calculate payment.
The minimum amount to be paid in the sliding-scale related to the 1<SUP style="FONT-size: 85%; vertical-align: text-top">st</SUP> earn-out payment
is approximately $14&nbsp;million, payable in both cash and shares of unregistered Calavo common stock.
RFG has five years to achieve any consideration pursuant to the 1<SUP style="FONT-size: 85%; vertical-align: text-top">st</SUP> earn-out payment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>2</I><SUP style="FONT-size: 85%; vertical-align: text-top"><I>nd</I></SUP><I> earn-out payment</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assuming that the maximum earn-out payment has been achieved in the 1<SUP style="FONT-size: 85%; vertical-align: text-top">st</SUP> earn-out
payment, if RFG&#146;s EBITDA, for a 15-month period commencing after the closing date and ending prior
to the fifth anniversary of the closing date, is equal to or greater than $15.0&nbsp;million for each of
the 12-month periods therein, and RFG has concurrently reached a corresponding revenue achievement,
we have agreed to pay the Sellers $50&nbsp;million in cash and to issue to the Sellers 434,783 shares of
unregistered Calavo common stock, representing total consideration of approximately $60&nbsp;million.
This represents the maximum that can be awarded pursuant to the 2<SUP style="FONT-size: 85%; vertical-align: text-top">nd</SUP> earn-out payment.
In the event that the maximum EBITDA and revenue achievements have not been reached within five
years after the closing date, but RFG&#146;s 12-month EBITDA during such period equals or exceeds $10
million, and RFG has concurrently reached a corresponding revenue achievement, a sliding-scale will
be used to calculate payment. The minimum amount to be paid in the sliding-scale related to the
2<SUP style="FONT-size: 85%; vertical-align: text-top">nd</SUP> earn-out payment is approximately $27&nbsp;million, payable in both cash and shares of
unregistered Calavo common stock. RFG has five years to achieve any consideration pursuant to the
2<SUP style="FONT-size: 85%; vertical-align: text-top">nd</SUP> earn-out payment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All issuances of securities pursuant to the above have been made or, with respect to the
earn-out payments, will be made, in reliance on the exemption from registration contained in
Section&nbsp;4(2) of the Securities Act of 1933, as amended, and/or Regulation&nbsp;D thereunder. No general
solicitation or advertising was used in connection with the sale of the shares, and Calavo has
imposed appropriate limitations on resales. There was no underwriter involved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Management</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Acquisition Agreement, three of RFG&#146;s key employees have entered into
employment agreements with RFG, effective as of the closing date. Unless terminated earlier as
provided therein, the employment agreements have a term corresponding with the earn-out payment
periods
described above, and provide for compensation to such employees substantially similar to the
compensation of such employees prior to the merger, subject to reduction in certain events.
</DIV>

<!-- link1 "Item&nbsp;9.01. Financial Statements and Exhibits." -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits.</B>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" nowrap align="left">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Agreement and Plan of Merger dated May&nbsp;25, 2011 among Calavo Growers,
Inc., CG Mergersub LLC, Renaissance Food Group, LLC and Liberty
Fresh Foods, LLC, Kenneth Catchot, Cut Fruit, LLC, James
Catchot, James Gibson, Jose O. Castillo, Donald L. Johnson and RFG
Nominee Trust (1)</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to the Current Report on Form 8-K filed with the
Commission on June&nbsp;1, 2011. Exhibits and schedules to this exhibit have been omitted
pursuant to Item&nbsp;601(b)(2) of Regulation&nbsp;S-K. Calavo will furnish copies of the omitted
exhibits and schedules to the Commission upon its request. Certain portions of the exhibit
have been omitted based upon a request for confidential treatment filed by Calavo with the
Commission. The omitted portions of the exhibit have been separately filed by Calavo with
the Commission.</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "SIGNATURE" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Calavo Growers, Inc.<BR>
<BR>
</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">June&nbsp;7, 2011</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Lecil E. Cole
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Lecil E. Cole&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Chairman of the Board of Directors, Chief Executive Officer
and President<br>
(Principal Executive Officer)&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
