Cal-Maine Foods acquires Mahard Egg Farm assets

US-based fresh egg producer Cal-Maine Foods has completed the deal that it announced previously for the acquisition of certain assets of Mahard Egg Farm.

In October, Cal-Maine entered a definitive agreement to acquire substantially all of the production assets of Mahard Egg Farm. These assets relate to its commercial production, processing, distribution and sales.

Cal-Maine is primarily engaged in the production and sale of fresh shell eggs, including conventional, cage-free, organic and nutritionally enhanced eggs.

Mahard Egg Farm’s commercial shell egg production and processing assets currently have a capacity for about 3.9 million laying hens. However, they have a permitted capacity of up to eight million.

Other assets acquired by Cal-Maine include a feed mill, pullets and associated production facilities. The facilities are located in Chillicothe, Texas and Nebo, Oklahoma. They have also acquired Mahard Egg Farm’s distribution warehouse, which is located in Gordonville, Texas.

Neither company has disclosed the financial details of the deal.

In April this year, Cal-Maine announced it is investing $148m in the expansion of its three facilities to boost its cage-free capacity.

In a separate incident, a fire destroyed Cal-Maine’s egg production facility in Rice County. No injuries were reported.

Six fire departments from across Rice County responded to the fire, which they managed to contain in a single building that was used to house hens. A bulldozer was in place to help keep the fire from spreading at the complex that comprises about 12 structures.

Following the incident, Cal-Maine blocked access to the area for safety reasons. An investigation is being carried out to determine the cause of the fire.