Cal-Maine Foods to acquire Happy Hen’s egg production assets
US based egg producer Cal-Maine Foods has agreed to acquire the assets of Happy Hen Egg Farms for an undisclosed price.
The assets planned to be acquired include the Texas based Happy Hen’s commercial production, processing, distribution.
The commercial egg production and processing facilities included nearly 350,000 laying hens as well as associated distribution facilities in Texas near Harwood and Wharton.
Cal-Maine Foods chairman, president and CEO Dolph Baker said: “Located near our other Texas locations, Happy Hen Egg Farms’ current site is designed for capacity of up to 1.2 million laying hens, and we intend to capitalize on specific market opportunities created by this additional production capacity.
“This proposed transaction is commensurate with our strategy to expand our business through selective acquisitions. We look forward to the opportunity to extend our market reach and deliver greater value to both our customers and shareholders.”
The acquisition is likely to be completed in the coming weeks.
Headquartered in Jackson, Cal-Maine Foods is mainly into the production, grading, packing and marketing of fresh shell eggs such as conventional, cage-free, organic and nutritionally-enriched eggs.
One of the major US producers and distributors of fresh shell eggs in the country, Cal-Maine Foods’ business is mainly concentrated on the southwestern, southeastern, mid-western and mid-Atlantic regions of the US.
In December 2016, Cal-Maine Foods saw its net sales drop by 53.6% to $253.5m in the second quarter of fiscal 2017.
Earlier, the egg producer had closed its acquisition of assets of Foodonics International trading under Dixie Egg Company. The acquisition included commercial egg production and processing facilities with nearly 1.6 million laying hens.