US egg firm Cal-Maine Foods has struck a deal to buy the commercial egg business of poultry firm Pilgrim's Pride.
Cal-Maine said today (18 July) the acquisition would include two production complexes that can house 1.4m laying hens.
In March, Cal-Maine reported mixed nine-month results as feed costs weighed on its third-quarter results. However, operating profit and sales were still up in the first nine months of the year.
Pilgrim's Pride recorded a loss of over US$496m in its last financial year, which ran until 25 December. The company has been looking to drive efficiency across its business and in May announced plans to cut jobs at a plant in Tennessee.
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July 18, 2012 08:00 AM Eastern Daylight Time
Cal-Maine Foods, Inc. Announces Agreement to Acquire Egg Production Assets of Pilgrim’s Pride Corporation
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 Pilgrim’s Pride Corporation (NYSE: PPC). The assets to be purchased by Cal-Maine Foods include two production complexes with capacity for approximately 1.4 million laying hens and adjacent land located near Pittsburg, Texas. The Company expects to close the transaction in August 2012.
Commenting on the announcement, Dolph Baker, president and chief executive officer of Cal-Maine Foods, Inc., said, “Cal-Maine Foods is very pleased to announce this acquisition. Pilgrim’s Pride has an excellent reputation and strong brand recognition with a well-established customer base. These production facilities will complement our existing operations in Texas and the additional capacity will enhance our ability to serve our customers in the Texas markets. We welcome this opportunity for the continued growth of our business and the ability to provide greater value for our customers and 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
