Newberry, SC – Cal-Maine Foods, Inc. Acquires ISE America, Inc.
In a strategic move to broaden its operations, Cal-Maine Foods, Inc. has successfully acquired the assets of ISE America, Inc. and its affiliates for about $110 million. This acquisition, which was announced on July 9, 2024, will be funded with cash on hand, showcasing Cal-Maine’s robust financial position.
Significant Expansion in Egg Production
The assets acquired include several key facilities related to commercial shell egg production and processing. These operations feature a total capacity for around 4.7 million laying hens. Notably, this figure encompasses one million cage-free hens and 1.2 million pullets, alongside essential feed mills and an egg products breaking facility.
Additionally, the acquisition encompasses approximately 4,000 acres of land and a well-established customer distribution network that spans across the Northeast and Mid-Atlantic states. With production operations now covering Maryland, New Jersey, Delaware, and South Carolina, Cal-Maine Foods is poised to significantly enhance its market reach.
Looking Ahead to New Opportunities
In discussing the acquisition, Sherman Miller, president and CEO of Cal-Maine Foods, expressed enthusiasm about the potential this new venture brings. “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,” Miller stated.
He added that this acquisition allows Cal-Maine to serve new customers and expand its production capabilities, particularly in regions where it has not previously operated. Miller highlighted that this acquisition represents an entry into important new territories for Cal-Maine Foods, specifically in Maryland, New Jersey, and Delaware, where production operations had not existed before.
Honoring Legacy and Values
Cal-Maine Foods recognizes ISE’s long-standing reputation in the egg production industry, with a commitment to maintaining the integrity and legacy that ISE brings to the table. “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,” stated Miller.
Cal-Maine Foods also emphasized its strong record of successfully integrating acquired operations, thanks to a proven operational model. The integration of the dedicated ISE operations team into the Cal-Maine Foods family is seen as a vital step toward driving future success.
Benefits for Customers and Shareholders
The overall goal of this acquisition is to create greater value for both customers and shareholders alike. By expanding into new territories and enhancing both production and distribution capabilities, Cal-Maine Foods looks to optimize its service offerings and boost efficiency.
As Cal-Maine Foods takes this important step forward, it aims not only to strengthen its market presence but also to uphold its commitment to quality and service excellence in the egg production industry. The management is confident that the combination of both companies will yield positive results and foster lasting relationships within the industry.
