Cal-Maine Foods, the largest egg producer in the United States, plans to acquire Foodonics International.
On August 2, the Jackson, Mississippi, egg company announced its signature of a letter of intent to acquire substantially all of the assets of Foodonics and its entities doing business as Dixie Egg Co.
A press release from Cal-Maine said the assets to be acquired include commercial egg production and processing facilities with capacity for about 1.6 million layers and related feed production, milling and distribution facilities in Georgia, Alabama and Florida. Dixie Egg, based in Jacksonville, Florida, has contract arrangements for an additional 1.5 million layers as well.
Additionally, Cal-Maine will acquire the Egg-Land’s Best Inc. franchise with licensing rights for markets in Alabama, Florida and Georgia as well as Puerto Rico, the Bahamas and Cuba. It expects the transaction to close in early October.
Cal-Maine is the world’s largest producer and distributor of eggs. According to WATT Global Media’s data, the company, estimated to have 36.38 million laying hens, would grow its flock to nearly 40 million birds with the inclusion of UEMC (Dixie Egg Co./Foodonics).
In June, Cal-Maine CEO Dolph Baker said the company, which achieved its position of leadership through acquisitions, continues to prioritize acquisitions despite the egg industry’s current challenges.
As nationwide demand for cage-free and specialty eggs grows, Baker said the company has invested $160 million in projects aiming to increase the company’s cage-free, organic and non-specialty production capacity.