Cal-Maine Foods, Inc. Announces Agreement to Acquire Egg Production Assets of Maxim Production Co., Inc.
JACKSON, Miss.--(BUSINESS WIRE)-- Cal-Maine Foods, Inc. (NAS: CALM) today announced that the Company has reached an agreement to acquire the commercial egg operations of Maxim Production Co., Inc. The assets to be purchased by Cal-Maine Foods include a feed mill and two production complexes with capacity for approximately 3.5 million laying hens with related pullet capacity, all located near Boling, Texas. In addition, the acquisition will include contract capacity for approximately 500,000 laying hens near Gonzalez, Texas. The Company expects to close the transaction in November 2012.
Commenting on the announcement, Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, Inc., said, "Maxim Production represents an excellent addition to Cal-Maine's operations. Along with our recent acquisition of the Pilgrim's Pride commercial egg operations, we have expanded our presence in Texas and enhanced our ability to serve our customers in this important market region. This transaction further advances our strategy to grow our business through selective acquisitions. We look forward to working together to provide outstanding service to our customers and deliver greater value to our shareholders."
Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing and sale of fresh shell eggs, including conventional, cage-free, organic and nutritionally-enhanced eggs. The Company, which is headquartered in Jackson, Mississippi, is the largest producer and distributor of fresh shell eggs in the United States and sells the majority of its shell eggs in approximately 29 states across the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States.
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), (iii) changes in the market prices of shell eggs and feed costs, (iv) changes or obligations that could result from our future acquisition of new flocks or businesses, and (v) 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 update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.
Cal-Maine Foods, Inc.
Dolph Baker, Chairman, President and CEO
Timothy A. Dawson, Vice President and CFO
KEYWORDS: United States North America Mississippi Texas
The article Cal-Maine Foods, Inc. Announces Agreement to Acquire Egg Production Assets of Maxim Production Co., Inc. originally appeared on Fool.com.
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