Cal-Maine Foods has reached a definitive agreement to acquire substantially all of the assets of Featherland Egg Farms Inc., relating to its commercial shell egg production, processing, distribution and sale business.
The assets to be acquired, subject to the completion of this transaction, include commercial egg production and processing facilities with current capacity for approximately 600,000 laying hens, a feed mill, and related production and distribution facilities located near Marion, Texas. The company expects to close the transaction in the next few weeks.
Commenting on the announcement, Dolph Baker, chairman and chief executive officer of Cal-Maine Foods, said, “We are pleased to announce the acquisition of the Featherland Egg Farms assets. This transaction is consistent with our strategy to expand our business through selective acquisitions. It is located near many of our other locations and major market areas in south Texas, and we intend to capitalize on specific market opportunities created by this additional production capacity. We look forward to the opportunity to extend our market reach and deliver greater value to both our customers and shareholders.”
Cal-Maine Foods, headquartered in Jackson, Mississippi is the world’s largest egg producer, and the acquisition of Featherland Egg Farms will help it solidify its position. Cal-Maine Foods, according to the world’s top egg producers rankings in Poultry International, has a flock of 40.1 million hens. The world’s No. 2 egg company, Mexico’s Proteina Animal (PROAN) has a flock of 33 million, while the world’s third largest egg producer and the second largest egg company in the United States, Rose Acre Farms, has 26.9 million hens.
Once Cal-Maine’s plans to acquire of Featherland Egg Farms are completed, Cal-Maine Foods will have acquired 21 egg companies since 1989. Its most recent acquisitions include Happy Hen Egg Co. in 2017 and Dixie Egg Co. in 2016.