Cal-Maine Foods has reached a definitive agreement to acquire substantially all of the assets of Mahard Egg Farm, relating to its commercial shell egg production, processing, distribution and sale of shell eggs business.
The assets to be acquired, subject to the completion of this transaction, include commercial shell egg production and processing facilities with current capacity for approximately 3.9 million laying hens and permitted capacity for up to 8.0 million laying hens, a feed mill, pullets and related production facilities located in Chillicothe, Texas, and Nebo, Oklahoma, and a distribution warehouse located in Gordonville, 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 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, we have an opportunity to reach more customers in Texas and southern Oklahoma with this additional production capacity. 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.”
Mahard Egg Farm is the 25th largest egg company in the United States, according to the Egg Industry Top Companies rankings. When finalized, the acquisition would further solidify Cal-Maine as the nation’s and the world’s largest egg company with more than 44 million hens, according to 2018 numbers.
Cal-Maine Foods, headquartered in Jackson, Mississippi, is primarily engaged in the production, grading, packing and sale of fresh shell eggs, including conventional, cage-free, organic and nutritionally-enhanced eggs.