Cal-Maine Foods, Inc. Announces Definitive Agreement to Acquire Egg Production Assets of Happy Hen Egg Farms, Inc.
February 09 2017 - 8:00AM
Business Wire
Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced that it has
reached a definitive agreement to acquire substantially all of the
assets of Happy Hen Egg Farms, Inc., relating to their commercial
production, processing, distribution and sale of shell eggs
business. The assets to be acquired, subject to the completion of
this transaction, include commercial egg production and processing
facilities with current capacity for approximately 350,000 laying
hens and related distribution facilities located near Harwood and
Wharton, Texas. The Company expects to close the transaction in the
next few weeks.
Commenting on the announcement, Dolph Baker, chairman, president
and chief executive officer of Cal-Maine Foods, Inc., said, “We are
pleased to announce the acquisition of Happy Hen Egg Farms. Located
near our other Texas locations, Happy Hen Egg Farms’ current site
is designed for capacity of up to 1.2 million laying hens, and we
intend to capitalize on specific market opportunities created by
this additional production capacity. This proposed transaction is
commensurate with our strategy to expand our business through
selective acquisitions. We look forward to the opportunity to
extend our market reach and deliver greater value to both 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 states across the southwestern, southeastern,
mid-western and mid-Atlantic regions of the United States.
Statements contained in this press release that are not
historical facts are forward-looking statements as that term
is defined in the Private Securities Litigation Reform Act of 1995.
The forward-looking statements are based on management’s current
intent, belief, expectations, estimates and projections regarding
our company and our industry. These statements are not guarantees
of future performance and involve risks, uncertainties, assumptions
and other factors that are difficult to predict and may be
beyond our control. The factors that could cause actual results to
differ materially from those projected in the forward-looking
statements include, among others, (i) the risk factors set forth in
the Company’s SEC filings (including its Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K), (ii) the risks and hazards
inherent in the shell egg business (including disease, pests,
weather conditions and potential for recall),
(iii) changes in the demand for and market prices of shell
eggs and feed costs, (iv) our ability to predict and meet demand
for cage-free and other specialty eggs, (v) risks, changes or
obligations that could result from our future acquisition of
new flocks or businesses, (vi) adverse results in pending
litigation matters and (vii) risk that the pending transaction will
not be completed. SEC filings may be obtained from the
SEC or the Company’s website, www.calmainefoods.com. Readers are
cautioned not to place undue reliance on forward-looking
statements because, while we believe the assumptions
on which the forward-looking statements are based are
reasonable, there can be no assurance that these
forward-looking statements will prove to be accurate.
Further, the forward-looking statements included herein
are only made as of the respective dates thereof, or if
no date is stated, as of the date hereof. Except as
otherwise required by law, we disclaim any intent or
obligation to publicly update these forward-looking statements,
whether as a result of new information, future events or
otherwise.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170209005634/en/
Cal-Maine Foods, Inc.Dolph Baker, 601-948-6813Chairman,
President and CEOorTimothy A. Dawson, 601-948-6813Vice President
and CFO
Cal Maine Foods (NASDAQ:CALM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Cal Maine Foods (NASDAQ:CALM)
Historical Stock Chart
From Apr 2023 to Apr 2024