Cal-Maine Foods, Inc., has reached an agreement to acquire the majority of the assets of Zephyr Egg Company, located in Zephyrhills, Florida.
Zephyr Egg has been a major participant in the egg industry in Florida and the southeastern United States for over 40 years. The assets to be purchased by Cal-Maine include approximately two million laying hens, pullet growing facilities, two egg processing plants, a feed mill and a fleet of delivery trucks for both eggs and feed.
Additionally, Cal-Maine will acquire the Eggland’s Best franchise for southern Florida, certain flocks of contract laying hens, and Zephyr’s interest in American Egg Products, Inc., in which Cal-Maine already has a majority interest.
Cal-Maine said it expects to close the transaction by the end of June 2008.Commenting on the announcement, Fred Adams, Jr., chairman and chief executive officer of Cal-Maine, said: “Cal-Maine Foods is very pleased to announce this acquisition. The Zephyr Egg operations have an excellent reputation, efficient operations and a well-established customer base. This acquisition will complement our existing operations in Florida and allow us to enhance service to our existing customers and attract additional customers in Florida and other southeastern markets. We look forward to the opportunity to continue to grow our business and provide greater value for our shareholders.”