Cal-Maine Foods Inc.
07/01/2024 | Press release | Distributed by Public on 07/01/2024 04:02
Material Event Form 8 K
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Contacts:
Sherman Miller, President and CEO
Max P. Bowman, Vice President and CFO
(601) 948-6813
CAL-MAINE FOODS, INC. ANNOUNCES ACQUISITION OF
EGG PRODUCTION ASSETS OF ISE AMERICA, INC.
RIDGELAND, Miss. (June28, 2024) -Cal-Maine Foods, Inc.(NASDAQ: CALM) ("Cal-MaineFoods" or the
"Company") today announced the Company has completed the acquisition of substantially all the assets of
ISE America, Inc. andcertain affiliates ("ISE") for approximately$110 million. Cal-Maine Foods isfunding
theacquisitionwithavailablecashonhand.TheacquiredISEassetsincludecommercialshellegg
productionandprocessingfacilitieswithcurrentcapacityofapproximately4.7millionlayinghens,
including1.0millioncage-free,and1.2millionpullets,feedmills,approximately4,000acresofland,
inventories and an egg productsbreaking facility.The acquired assets also includean extensive customer
distribution network acrossthe Northeast andMid-Atlantic states, andproduction operations inMaryland,
New Jersey, Delaware and South Carolina.
Commenting onthe announcement,Sherman Miller,president andchief executiveofficer ofCal-
Maine Foods, Inc., stated, "Weare excited about the opportunityto significantly enhance our marketreach
intheNortheastandMid-AtlanticstateswiththeacquisitionoftheseassetsfromISE.Theadded
productionanddistributioncapabilitieswillallowustoservenewcustomersandexpandcapacity,
particularly in theNortheast, whichis largelya new territoryfor Cal-Maine Foods.We are alsoacquiring
production assetsfor thefirst timein Maryland,New Jerseyand Delaware.ISE hasa longhistory inthe
egg productionbusiness andenjoys a solidreputation inthe marketplace.We willcontinue to honorthis
important legacy aswe build newconnections and customerrelationships. Cal-MaineFoods has astrong
recordofdrivingvaluefromouracquiredoperationswithaprovenoperatingmodel.Wewelcomethe
dedicated ISE operations team to the Cal-Maine Foods familyand look forward to a successful integration.
Workingtogether,wehaveauniqueopportunitytodelivergreatervaluetobothourcustomersand
shareholders."
About Cal-Maine Foods
Cal-Maine Foods,Inc. isprimarily engagedin theproduction, grading,packaging, marketingand
distributionoffreshshelleggs,includingconventional,cage-free,organic,brown,free-range,pasture-
raised and nutritionallyenhanced eggs. TheCompany, which isheadquartered inRidgeland, Mississippi,
is the largestproducer and distributorof fresh shelleggs in theUnited States andsells the majorityof its
shelleggsinstatesacrossthesouthwestern,southeastern,mid-westernandmid-Atlanticregionsofthe
United States.
Forward Looking Statements
Statementscontainedinthispressreleasethatarenothistoricalfactsareforward-looking
statements as thatterm is definedin the PrivateSecurities LitigationReform Act of1995. The forward-
lookingstatementsarebasedonmanagement'scurrentintent,belief,expectations,estimatesand
projectionsregardingourcompanyandourindustry.Thesestatementsarenotguaranteesoffuture
performance and involve risks,uncertainties, assumptions andother factors that aredifficult to predict
and may be beyondour control. The factorsthat could cause actualresults to differ materiallyfrom those
projectedintheforward-lookingstatementsinclude,amongothers,(i)theriskfactorssetforthinthe
Company's SEC filings(including its AnnualReports on Form10-K, Quarterly Reportson Form 10-Qand
CurrentReportson Form8-K),(ii)therisks andhazardsinherentintheshelleggbusiness(including
disease, pests,weather conditionsand potentialfor recall),including butnot limitedto themost recent
outbreak of highly pathogenicavian influenza affecting poultryin the U.S., Canadaand other countries
thatwasfirstdetectedincommercialflocksintheU.S.inFebruary2022andthatfirstimpactedour
flocks in December 2023, (iii) changes in the demand for and market prices of shell eggs and feed costs,
Cal-Maine Foods, Inc.Announces Acquisition of Egg Production Assets of ISE America, Inc.
Page 2
June 28, 2024
(iv) our abilityto predict andmeet demand forcage-free and otherspecialty eggs, (v)risks, changes or
obligations that could result from our future acquisition of new flocks or businesses and risks or changes
thatmaycauseconditionstocompletingapendingacquisitionnottobemet,(vi)risksrelatingto
increasedcostsandhigherandpotentiallyfurtherincreasesininflationandinterestrates,(vii)our
abilitytoretainexistingcustomers,acquirenewcustomersandgrowourproductmix,(viii)adverse
results inpending litigationmatters, and(ix) globalinstability including asa resultof thewar inUkraine,
the Israel-Hamas conflictand attacks on shippingin the Red Sea.SEC filings maybe obtained from the
SECortheCompany'swebsite
,
www.calmainefoods.com.Readersarecautionednottoplaceundue
reliance on forward-lookingstatements because, whilewe believe theassumptions on whichthe forward-
lookingstatementsarebasedarereasonable,therecanbenoassurancethattheseforward-looking
statements willprove tobe accurate.Further, theforward-looking statementsincluded hereinare only
made as of therespective dates thereof,or if no dateis stated, as ofthe date hereof.Except as otherwise
requiredbylaw,wedisclaimanyintentorobligationtopubliclyupdatetheseforward-looking
statements, whether as a result of new information, future events or otherwise.
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