Cal-Maine shells out for local peer

Cal-Maine shells out for local peer

Cal-Maine Foods, the largest producer of fresh shell eggs in the US, has snapped up a local peer to boost its presence in the south of the country.

The publicly-listed Cal-Maine has acquired "substantially all of the assets" of Texas-based Mahard Egg Farm, including in production, processing and distribution. Terms were not disclosed.

"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," Dolph Baker, Cal-Maine's chairman and CEO, said. "This proposed transaction is commensurate with our strategy to grow our business through selective acquisitions, as well as through expansion of our existing facilities."

The Mahard Farms assets have capacity for approximately 3.9 million laying hens and permitted capacity for up to 8m laying hens. Also included is a feed mill, as well as production facilities located in Texas and in Oklahoma.