Fresh Del Monte Produce ( FDP ) Inc. , a global producer, marketer and distributor of fresh produce, has acquired Avolio, Uganda's leading provider of bulk crude and edible avocado oil.

Through this move, Fresh Del Monte will secure a majority ownership stake in Avolio, further advancing its strategic goal of expanding into high-value specialty ingredients.

The acquisition enables Fresh Del Monte to capitalize on Avolio’s advanced avocado oil extraction technology, converting avocados into high-quality oil.

Also Read: Dollar Tree To Offload Family Dollar Business For $1 Billion, Anticipates 3% To 5% Standalone Same-Store Sales Growth

This move is intended to drive growth within the company's Specialty Ingredients and Innovation sector. Since avocados are one of the few fruits that yield oil from the pulp, Fresh Del Monte can create value from avocados that cannot be sold whole.

The company plans to scale Avolio’s technology, which can process up to 140 metric tons of avocados per day. Fresh Del Monte held $32.6 million in cash and equivalents as of December 27, 2024.

“Acquiring Avolio is a strategic step aligned with our long-term vision to extract greater value across our supply chain while advancing our commitment to sustainability,” said chairman and CEO Mohammad Abu-Ghazaleh.

“It complements our newest business division — biomass and specialty ingredients — through which we are transforming agricultural byproducts into high-impact solutions that enhance soil health, support human wellness, and create new applications for a circular economy.”

The avocado oil market is growing rapidly. It is currently valued at $1.2 billion and, according to Fortune Business Insights, will grow at an expected compound annual growth rate (CAGR) of 8% to 10%.

As part of its strategy to capture a larger share of this market, Fresh Del Monte plans to increase production capacity and develop additional facilities to meet the rising global demand for avocado oil.

Price Action: FDP shares traded higher by 0.27% at $29.28 at last check on Wednesday.

Read Next: What’s Going On With Electronics Maker Kopin’s Stock Today?