Cal-Maine Foods has entered into an agreement to purchase assets from its American counterpart, Fassio Egg Farms.
In a stock exchange filing, publicly-traded Cal-Maine stated that the deal encompasses “practically all of the assets connected to the commercial shell egg production and processing business of Fassio Egg Farms, Inc.”
Cal-Maine is poised to acquire commercial shell egg production and processing facilities capable of accommodating around 1.2 million laying hens, primarily raised in cage-free environments. Additionally, the assets encompass a feed mill, fertilizer production facilities, and land situated in Erda, on the outskirts of Salt Lake City, Utah.
This signifies Cal-Maine’s first publicly-announced acquisition since the appointment of Sherman Miller, a seasoned industry veteran with over two decades of experience, as President and CEO in September of the previous year.
“We are excited about the opportunity to expand our market presence in Utah and the western United States with the proposed acquisition of these assets from Fassio,” Miller said.
“The additional production capacity, especially for cage-free eggs, will enhance our ability to serve our valued customers in this important market area.”
Terms were not disclosed. Cal-Maine said it expects to close the transaction “in the next few weeks”.
Cal-Maine asserts its position as the foremost producer of fresh shell eggs in the United States. In July, the company reported a remarkable 77% surge in its annual net sales, totaling $3.14 billion for the year ending on June 3rd. This surge in sales occurred during a 12-month period characterized by a significant increase in egg prices due to the outbreak of highly pathogenic avian influenza in the United States.
The annual operating income amounted to $967.7 million, a substantial increase from the $143.5 million recorded the previous year. Meanwhile, the net income attributable to Cal-Maine reached $758 million, a notable rise compared to the $132.7 million reported in the prior year.
The company is slated to announce its first-quarter financial results for the current fiscal year on October 3rd.