US egg firm Cal-Maine Foods has signed a deal to acquire the egg production assets of Maxim Production Co.
The assets included in the deal comprise a feed mill and two production complexes with capacity for around 3.5m laying hens with related pullet capacity, all located near Boling, Texas.
In addition, the acquisition will include contract capacity for around 500,000 laying hens near Gonzalez, Texas.
The company said it expects to close the transaction, made for an undisclosed sum, in November.
"Maxim Production represents an excellent addition to Cal-Maine's operations," said chairman, president and CEO of Cal-Maine Dolph Baker. "Along with our recent acquisition of the Pilgrim's Pride commercial egg operations, we have expanded our presence in Texas and enhanced our ability to serve our customers in this important market region."
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Cal-Maine Foods, Inc. Announces Agreement to Acquire Egg Production Assets of Maxim Production Co., Inc.
JACKSON, Miss.--(BUSINESS WIRE)--Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced that the Company has reached an agreement to acquire the commercial egg operations of Maxim Production Co., Inc. The assets to be purchased by Cal-Maine Foods include a feed mill and two production complexes with capacity for approximately 3.5 million laying hens with related pullet capacity, all located near Boling, Texas. In addition, the acquisition will include contract capacity for approximately 500,000 laying hens near Gonzalez, Texas. The Company expects to close the transaction in November 2012.
Commenting on the announcement, Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, Inc., said, "Maxim Production represents an excellent addition to Cal-Maine's operations. Along with our recent acquisition of the Pilgrim's Pride commercial egg operations, we have expanded our presence in Texas and enhanced our ability to serve our customers in this important market region. This transaction further advances our strategy to grow our business through selective acquisitions. We look forward to working together to provide outstanding service to our customers and deliver greater value to our shareholders."
Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing and sale of fresh shell eggs, including conventional, cage-free, organic and nutritionally-enhanced eggs. The Company, which is headquartered in Jackson, Mississippi, is the largest producer and distributor of fresh shell eggs in the United States and sells the majority of its shell eggs in approximately 29 states across the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States.
Original source: Cal-Maine Foods
