July 2, 2024

Cal-Maine Foods announces acquisition of egg production assets of ISE America

Cal-Maine Foods announced the acquisition of substantially all the assets of ISE America, Inc and certain affiliates for approximately US$110 million.

Cal-Maine Foods is funding the acquisition with available cash on hand.

The acquired ISE assets include commercial shell egg production and processing facilities with current capacity of approximately 4.7 million laying hens, including 1.0 million cage-free, and 1.2 million pullets, feed mills, approximately 4,000 acres of land, inventories and egg products breaking facility.

The acquired assets also include an extensive customer distribution network across US northeast and Mid-Atlantic states, and production operations in Maryland, New Jersey, Delaware and South Carolina.

Commenting on the announcement, Sherman Miller, president and chief executive officer of Cal-Maine Foods, said "We are excited about the opportunity to significantly enhance our market reach in the Northeast and Mid-Atlantic states with the acquisition of these assets from ISE. The added production and distribution capabilities will allow us to serve new customers and expand capacity, particularly in the Northeast, which is largely a new territory for Cal-Maine Foods."

"We are also acquiring production assets for the first time in Maryland, New Jersey and Delaware. ISE has a long history in the egg production business and enjoys a solid reputation in the marketplace. We will continue to honour this important legacy as we build new connections and customer relationships. Cal-Maine Foods has a strong record of driving value from our acquired operations with a proven operating model. We welcome the dedicated ISE operations team to the Cal-Maine Foods family and look forward to a successful integration. Working together, we have a unique opportunity to deliver greater value to both our customers and shareholders."

-      Cal Maine Foods