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Cal-Maine Foods to buy egg production assets of Mahard Egg Farm

Fresh shell eggs producer Cal-Maine Foods Inc. on Oct. 16 said it agreed to buy all the assets of Texas-based Mahard Egg Farm related to the latter's commercial shell egg business.

The acquisition includes Mahard Egg Farm's commercial shell egg production, processing facilities with a current capacity for 3.9 million laying hens, a feed mill and facilities for production and distribution.

Financial terms of the transaction were not disclosed.

"Cal-Maine Foods already has a market presence in Texas, and, with the addition of these facilities located near the major market areas north of Dallas, we have an opportunity to reach more customers in Texas and southern Oklahoma with this additional production capacity," Cal-Maine Foods Chairman and CEO Dolph Baker said in a statement.

Baker added that the proposed transaction is in line with its strategy to grow its business through selective acquisitions, as well as through expansion of its existing facilities.

Cal-Maine Foods expects to close the transaction in the next few weeks.