JACKSON, Miss.--(BUSINESS WIRE)--Oct. 10, 2018--
Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced that it has reached
a definitive agreement to acquire substantially all of the assets of
Featherland Egg Farms, Inc., relating to its commercial shell egg
production, processing, distribution and sale 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 600,000 laying hens, a feed mill, and related
production and distribution facilities located near Marion, Texas. The
Company expects to close the transaction in the next few weeks.
Commenting on the announcement, Dolph Baker, chairman and chief
executive officer of Cal-Maine Foods, Inc., said, “We are pleased to
announce the acquisition of the Featherland Egg Farms assets. This
transaction is consistent with our strategy to expand our business
through selective acquisitions. It is located near many of our other
locations and major market areas in south Texas, and we intend to
capitalize on specific market opportunities created by this additional
production capacity. 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: https://www.businesswire.com/news/home/20181010005540/en/
Source: Cal-Maine Foods, Inc.
Cal-Maine Foods, Inc.
Dolph Baker, 601-948-6813
Chairman and
CEO
or
Max P. Bowman, 601-948-6813
Vice President and CFO