Cal-Maine Foods (NASDAQ:CALM), the No. 1 U.S. producer of fresh-shell eggs, has inked a deal to buy the commercial egg operations of Pilgrim’s Pride (NYSE:PPC) in an effort to broaden its Texas operations.
The deal announced on Wednesday includes two production facilities with capacity for about 1.4 million laying hens and other land near Pittsburg, Texas.
Continue Reading Below
Terms of the transaction were not disclosed.
“These production facilities will complement our existing operations in Texas and the additional capacity will enhance our ability to serve our customers in the Texas markets,” Cal-Maine CEO Dolph Baker said in a statement.
Jackson, Miss.-based Cal-Maine produces, grades, packages and sells fresh-shell eggs using a variety of methods, from conventional and cage-free to organic and nutritionally-enhanced.
Dolph said Pilgrim’s Pride has an established customer base and strong brand recognition.
Greeley, Colo.-based Pilgrims Pride’s other operations include chicken products such as refrigerated whole and cut-up chicken and pre-marinated chicken.