Cal-Maine Foods to acquire Mahard Egg Farm’s production assets

US-based fresh egg producer Cal-Maine Foods has entered a definitive agreement to acquire substantially all of the production assets of Mahard Egg Farm.

Cal-Maine will acquire Mahard Egg Farm’s assets relating to its commercial production, processing, distribution and sales.

The commercial shell egg production and processing assets to be acquired have a permitted capacity for up to eight million laying hens but currently have approximately 3.9 million.

Cal-Maine Foods chairman and CEO Dolph Baker said: “We are very pleased to announce the acquisition of these assets from Mahard Egg Farm.

“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.

“This proposed transaction is commensurate with our strategy to grow our business through selective acquisitions, as well as through expansion of our existing facilities. We look forward to the opportunity to extend our market reach and deliver greater value to both our customers and shareholders.”

Other assets to be acquired by Cal-Maine are a feed mill, pullets and associated production facilities, which are located in Chillicothe, Texas, and Nebo, Oklahoma.

It will also acquire a distribution warehouse located in Gordonville, Texas.

The acquisition of the Mahard Egg Farm assets is subject to the completion of this transaction, which is expected to close in the next few weeks.

Financial details of the agreement have not been divulged by both the companies.

Last October, Cal-Maine Foods reached an agreement to acquire production assets of Featherland Egg Farms for an undisclosed price.