Cal-Maine Foods expands market presence with US$110M acquisition of ISE America

USA – Cal-Maine Foods, a leading US-based egg supplier listed on Nasdaq, has completed the acquisition of key assets from ISE America for approximately US$110 million. 

This strategic move includes the purchase of shell egg production facilities in Maryland, New Jersey, Delaware, and South Carolina, along with 4,000 acres of associated land.

The acquired assets boast a combined capacity of 4.7 million laying hens, complemented by facilities producing one million cage-free eggs and 1.2 million pullets annually.

“This acquisition significantly enhances our market reach in the Northeast and Mid-Atlantic states,” stated Sherman Miller, President and CEO of Cal-Maine Foods. 

He emphasized the potential to serve new customers and expand production capabilities, particularly in regions where the company has not previously operated extensively. 

Notably, this transaction marks Cal-Maine Foods’ first direct production assets in Maryland, New Jersey, and Delaware.

The acquisition includes ISE America’s feed mills, crucial to its production operations, which distribute eggs across the Northeast and Mid-Atlantic. 

Cal-Maine Foods has committed to retaining the employees of ISE America as part of the acquisition, although specific numbers were not disclosed. 

The company has been approached for further details regarding the affiliates involved in the deal and specifics on the factories and workforce affected.

Cal-Maine Foods’ latest financial results, released in April, reflected challenges due to lower selling prices resulting from the outbreak of highly pathogenic avian influenza (HPAI). 

Despite these setbacks, Miller expressed satisfaction with the company’s third-quarter performance, noting strong financial and operational results.

With recent disruptions at its Texas and Kansas facilities due to bird flu outbreaks, Cal-Maine Foods remains resilient in its expansion efforts.