Cal-Maine Foods Inc (NASDAQ: CALM) announced that the company has reached an agreement to acquire the commercial egg operations of Pilgrim’s Pride Corporation (NYSE: PPC).
Assets to be purchased by Cal-Maine Foods include two production complexes with capacity for approximately 1.4 million laying hens and adjacent land near Pittsburg TX. The company expects to close the transaction in August 2012.
Dolph Baker, president and chief executive officer of Cal-Maine Foods, said, “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 is primarily engaged in the production, grading, packing, and sale of fresh shell eggs, including conventional, cage-free, organic, and nutritionally enhanced eggs. Headquartered in Jackson MS, the company is the largest producer and distributor of fresh shell eggs in the United States. It sells the majority of its shell eggs in about 29 states across the southwestern, southeastern, midwestern, and mid-Atlantic regions of the United States.
