Cal-Maine Foods has agreed to acquire the remaining 50% interest in Red River Valley Egg Farm from Rose Acre Farms for $48.5 million.
Red River Valley Egg Farm – which was established as a joint venture between the two companies – will now become a wholly owned subsidiary of Cal-Maine Foods.
Red River owns and operates a speciality shell egg production complex with approximately 1.7 million laying hens, pullet capacity, a feed mill and a processing plant, located on around 400 acres of land near Bogata, Texas.
Commenting on the announcement, Cal-Maine Foods chairman and CEO Dolph Baker said: “We have enjoyed a good working relationship with Rose Acre Farms since we formed this partnership and are pleased to assume full ownership of Red River Valley Egg Farm.
“When it commenced operations in 2015, Red River Valley Egg Farm significantly increased the availability of cage-free and other speciality eggs to meet the growing consumer demand for those products, and we look forward to continuing to support our valued customers in this important region.
“Red River Valley Egg Farm’s experienced management team will remain in place and be integrated into Cal-Maine’s already deep roots in Texas. We believe this transaction will offer us additional opportunities to expand our production capacity and to meet the anticipated growing demand for cage-free and speciality eggs.”
The transaction is expected to close by the end of the month, subject to customary closing conditions.
Last year, Cal-Maine Foods announced a $40.1 million capital project to expand cage-free egg production at its facility in Guthrie, Kentucky.
© FoodBev Media Ltd 2020
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