Cal-Maine Foods, Inc. (NASDAQ: CALM) has completed the acquisition of substantially all the assets of ISE America, Inc. and certain affiliates for approximately $110 million, funded by available cash on hand. This acquisition includes commercial shell egg production and processing facilities with a current capacity of approximately 4.7 million laying hens, including 1.0 million cage-free, and 1.2 million pullets, feed mills, approximately 4,000 acres of land, inventories, and an egg products breaking facility.
The acquired assets also include an extensive customer distribution network across the Northeast and Mid-Atlantic states, and production operations in Maryland, New Jersey, Delaware, and South Carolina. This move is expected to significantly enhance Cal-Maine Foods' market reach in the Northeast and Mid-Atlantic states.
Sherman Miller, President and Chief Executive Officer of Cal-Maine Foods, Inc., expressed excitement about the opportunity to expand the company's capacity, particularly in the Northeast, and emphasized that Cal-Maine Foods has a strong record of driving value from its acquired operations with a proven operating model.
Cal-Maine Foods, Inc. is the largest producer and distributor of fresh shell eggs in the United States, primarily engaged in the production, grading, packaging, marketing, and distribution of various types of fresh shell eggs.
The company sells the majority of its shell eggs in states across the southwestern, southeastern, mid-western, and mid-Atlantic regions of the United States. This acquisition marks a strategic move to further strengthen its position in the market and expand its customer base. Following these announcements, the company's shares moved 2.7%, and are now trading at a price of $62.78. If you want to know more, read the company's complete 8-K report here.
