Cal-Maine Foods, Inc. Announces Definitive Agreement to Acquire Egg Production Assets of Fassio Egg Farms, Inc.
September 28 2023 - 5:19PM
Business Wire
Cal-Maine Foods, Inc. (NASDAQ: CALM) (“Cal-Maine Foods” or the
“Company”), the largest producer and distributor of fresh shell
eggs in the United States, today announced a definitive agreement
to acquire substantially all the assets of Fassio Egg Farms, Inc.
(“Fassio”), related to its commercial shell egg production and
processing business. The assets to be acquired, subject to the
completion of this transaction, include commercial shell egg
production and processing facilities with current capacity of
approximately 1.2 million laying hens, primarily cage-free, feed
mill, pullets, fertilizer production and composting operation and
land located in Erda, Utah, outside Salt Lake City. The Company
expects to close the transaction in the next few weeks, subject to
customary closing conditions.
Commenting on the announcement, Sherman Miller, president and
chief executive officer of Cal-Maine Foods, Inc., stated, “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. The additional production capacity,
especially for cage-free eggs, will enhance our ability to serve
our valued customers in this important market area. Fassio has been
a leader in the egg production business since 1915 and enjoys a
solid reputation in the community. We look forward to working with
the Fassio team as we extend our market reach and deliver greater
value to both our customers and shareholders.”
About Cal-Maine Foods
Cal-Maine Foods, Inc. is primarily engaged in the production,
grading, packaging, marketing and distribution of fresh shell eggs,
including conventional, cage-free, organic, brown, free-range,
pasture-raised and nutritionally enhanced eggs. The Company, which
is headquartered in Ridgeland, 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.
Forward Looking Statements
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), including but not limited to the most recent outbreak of
highly pathogenic avian influenza affecting poultry in the U.S.,
Canada and other countries that was first detected in commercial
flocks in the U.S. in February 2022, (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 and risks
or changes that may cause conditions to completing a pending
acquisition not to be met, (vi) risks relating to increased costs
and higher and potentially further increases in inflation and
interest rates, which began in response to market conditions caused
in part by the COVID-19 pandemic and which generally have been
exacerbated by the Russia-Ukraine war that began in February 2022,
(vii) our ability to retain existing customers, acquire new
customers and grow our product mix, and (viii) adverse results in
pending litigation matters. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20230927606265/en/
Sherman Miller, President and CEO Max P. Bowman, Vice President
and CFO (601) 948-6813
Cal Maine Foods (NASDAQ:CALM)
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