Cal-Maine Foods acquires ISE America assets for $110m
Cal-Maine Foods, Inc., a leader in the egg production industry, has officially completed its acquisition of substantially all the assets of ISE America, Inc. and certain affiliates for approximately $110 million. This strategic purchase, funded entirely through available cash on hand, includes a variety of assets crucial to expanding Cal-Maine’s operational capacity and market reach, particularly in the Northeast and Mid-Atlantic states.
– Asset Overview: The acquisition comprises commercial shell egg production and processing facilities with a current capacity for approximately 4.7 million laying hens, including 1.0 million cage-free hens. Additional assets include 1.2 million pullets, feed mills, around 4,000 acres of land, inventories, and an egg products breaking facility.
– Geographical Expansion: The new assets are located in Maryland, New Jersey, Delaware, and South Carolina, marking Cal-Maine’s first venture into these states. This expansion provides the company with an extensive customer distribution network across these regions, enhancing its ability to serve new and existing markets.
Sherman Miller, President and CEO of Cal-Maine Foods, expressed enthusiasm about the acquisition, noting the significant enhancement to the company’s market reach. “The added production and distribution capabilities will allow us to serve new customers and expand capacity,” said Miller. He emphasized the strategic importance of entering new territories in the Northeast and highlighted the company’s commitment to maintaining the legacy of ISE, a respected name in the egg production industry.
Headquartered in Ridgeland, Mississippi, Cal-Maine Foods, Inc. is the largest producer and distributor of fresh shell eggs in the United States. The company’s product portfolio includes conventional, cage-free, organic, brown, free-range, pasture-raised, and nutritionally enhanced eggs. Cal-Maine is known for its strong operational model and is dedicated to driving value from its acquisitions.
With the integration of the ISE assets, Cal-Maine Foods is poised to strengthen its presence in the egg production market and enhance its value proposition to customers and shareholders alike. The company looks forward to a successful integration of the ISE operations team and the continued expansion of its market capabilities.