Cal-Maine Foods, Inc. Announces Agreement to Acquire Egg Production Assets
of Maxim Production Co., Inc.
JACKSON, Miss. -- October 30, 2012
Cal-Maine Foods, Inc. (NASDAQ: 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 saleof fresh shell eggs, including conventional, cage-free, organic and
nutritionally-enhanced eggs. TheCompany, which is headquartered inJackson,
Mississippi, is the largest producer and distributor of fresh shell eggs in
the UnitedStates and sellsthemajority of its shell eggs in approximately
29states 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 statementsas 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 SECfilings (including its Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K), (ii)therisks and hazards inherent in the shell egg business
(including disease, pests, weather conditionsand 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 resultsin 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
statementsbecause, 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-lookingstatements included herein are only made as of the respective
dates thereof, or ifno date is stated, as of thedate 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
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