Cal-Maine Foods Inc. announced Oct. 16 that it has reached a definitive agreement to acquire substantially all of the assets of Mahard Egg Farm relating to its commercial shell egg production, processing and distribution business and sale of shell eggs.
The assets to be acquired, subject to completion of this transaction, include commercial shell egg production and processing facilities with a current capacity of approximately 3.9 million laying hens and permitted capacity for up to 8.0 million laying hens, as well as a feed mill, pullets and related production facilities located in Chillicothe, Texas, and Nebo, Okla., and a distribution warehouse located in Gordonville, Texas. The company expects to close on the transaction in the next few weeks.
“We are very pleased to announce the acquisition of these assets from Mahard Egg Farm. Cal-Maine Foods already has a market presence in Texas, and with the addition of these facilities located near the major market areas north of Dallas [Texas], we have an opportunity to reach more customers in Texas and southern Oklahoma with this additional production capacity,” Cal-Maine chairman and chief executive officer Dolph Baker said.
He continued, “This proposed transaction is commensurate with our strategy to grow our business through selective acquisitions as well as through expansion of our existing facilities. We look forward to the opportunity to extend our market reach and deliver greater value to both our customers and shareholders.”
Cal-Maine Foods is primarily engaged in the production, grading, packing and sale of fresh shell eggs, including conventional, cage-free, organic and nutritionally enhanced eggs. The company, headquartered in Jackson, Miss., is the largest producer and distributor of fresh shell eggs in the U.S. and sells the majority of its shell eggs in states across the southwestern, southeastern, midwestern and mid-Atlantic regions of the U.S.