Cal-Maine Foods has completed the acquisition of certain egg production assets of Mahard Egg Farm, for an undisclosed sum.
The move will see the US company take ownership of Mahard’s commercial shell egg production, processing, distribution and shell eggs business, in a move to increase its market presence.
Following the deal completion, Cal-Maine Foods will now acquire Mahard’s shell egg production and processing facilities, which currently holds a capacity of approximately 3.9 million laying hens.
However, its acquired assets allow capacity for up to eight million laying hens, a feed mill, pullets and related production facilities located in Chillicothe, Texas, and Nebo, Oklahoma. The deal also includes a distribution warehouse located in Gordonville, Texas.
Cal-Maine Foods’ original announcement to acquire Mahard Egg Farm was made in mid-October earlier this year.
During the time of the initial agreement, Dolph Baker, chairman and CEO 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.”
With headquarters in Mississippi, Cal-Maine Foods is primarily engaged in the production, grading, packing and sale of fresh shell eggs, including conventional, cage-free, organic and nutritionally enhanced eggs.
Last year in October, the fresh egg producer acquired all the assets of Texas-based Featherland Egg Farms, in a move to expand its market reach.
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