Cal-Maine Foods Expands Reach with Acquisition of ISE America
Newberry — In a significant move to enhance its market presence, Cal-Maine Foods, Inc. announced the acquisition of ISE America, Inc. and certain affiliates for a price of approximately $110 million. This strategic purchase was financed using Cal-Maine’s available cash on hand.
What Cal-Maine Is Gaining
The assets being acquired from ISE include several pivotal components for the egg production industry. This includes commercial shell egg production and processing facilities that can support around 4.7 million laying hens. Of this number, there are one million cage-free hens and 1.2 million pullets. Furthermore, the acquisition offers Cal-Maine ownership of feed mills, approximately 4,000 acres of land, inventories, and an egg products breaking facility.
To complement the production capabilities, the deal encompasses a significant customer distribution network that spans across the Northeast and Mid-Atlantic states. Cal-Maine will also be expanding its production operations into Maryland, New Jersey, Delaware, and South Carolina, marking its entry into Maryland, New Jersey, and Delaware for the first time.
Leadership Comments
Cal-Maine’s president and CEO, Sherman Miller, shared his enthusiasm regarding this acquisition. “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,” he stated. Miller emphasized that the added production and distribution capabilities will enable the company to serve new customers and bolster its capacity, particularly in a relatively unchartered territory for Cal-Maine Foods.
Miller also acknowledged the strong tradition maintained by ISE America in the egg production sector. “ISE has a long history in the egg production business and enjoys a solid reputation in the marketplace. We will continue to honor this important legacy as we build new connections and customer relationships,” he added.
Cal-Maine’s Proven Track Record
Cal-Maine Foods is known to have a successful history of enhancing value from its acquired operations through a documented operating model. Miller reassured stakeholders that the dedicated ISE operations team would now be part of the Cal-Maine family. “We look forward to a successful integration,” he said, highlighting the potential for a harmonious collaboration that could yield greater benefits for both customers and shareholders.
Looking Ahead
This acquisition positions Cal-Maine for extensive growth and an expanded market footprint. The company aims to leverage its resources and expertise to optimize operations in the newly acquired territories. As the company moves forward, it will work diligently to maintain its commitments while ensuring that the legacy of ISE America continues to thrive alongside its own.
The integration phase is expected to bring together the operations of both companies, with a focus on streamlining processes and enhancing customer service. This could mean not just growth for Cal-Maine Foods, but also added value for customers who rely on their products.
As Cal-Maine prepares for this next chapter, stakeholders and consumers alike are eager to see how the company will use its new assets to reshape the landscape of the egg production industry on the East Coast.
