Cal-Maine buys Rose Acre’s half of Red River Valley Egg Farm

Cal-Maine Foods reached a definitive agreement to purchase the remaining 50 percent membership interest in Red River Valley Egg Farm from Rose Acre Farms.

Roy Graber Headshot
(ziquiu | iStockPhoto.com)
(ziquiu | iStockPhoto.com)

Cal-Maine Foods reached a definitive agreement to purchase the remaining 50 percent membership interest in Red River Valley Egg Farm from Rose Acre Farms.

When the transaction closes, Red River Valley Egg Farm will become a wholly owned subsidiary of Cal-Maine Foods. The purchase price is $48.5 million for the balance of the joint venture’s membership interests. 

Red River Valley Egg Farm LLC was formed in 2015 as a joint venture between Cal-Maine and Rose Acre, respectively the two largest egg companies in the United States. In March 2016, then-Cal-Maine Foods Chief Financial Officer Tim Dawson said the farm, located near Bogata, Texas, was to be fully stocked with hens by early 2017.

Red River Valley Egg Farm owns and operates a specialty shell egg production complex with approximately 1.7 million laying hens, pullet capacity, feed mill, processing plant, related offices and outbuildings and related equipment located on approximately 400 acres near Bogata. Cal-Maine Foods expects to close the transaction by the end of the month, subject to customary closing conditions.

“We have enjoyed a good working relationship with Rose Acre Farms since we formed this partnership and are pleased to assume full ownership of Red River Valley Egg Farm. When it commenced operations in 2015, Red River Valley Egg Farm significantly increased the availability of cage-free and other specialty eggs to meet the growing consumer demand for those products, and we look forward to continuing to support our valued customers in this important region,” said Dolph Baker, chairman and chief executive officer of Cal-Maine Foods. 

“Red River Valley Egg Farm’s experienced management team will remain in place and be integrated into Cal-Maine’s already deep roots in Texas. We believe this transaction will offer us additional opportunities to expand our production capacity and to meet the anticipated growing demand for cage-free and specialty eggs.”

According to the Egg Industry Top Companies Special Report, Cal-Maine Foods, the largest egg producer in the United States, had a flock of 44.26 million hens at the conclusion of 2020. Rose Acre Farms, the No. 2 egg producer in the country, had 27.6 million hens.

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