JACKSON, Miss.--(BUSINESS WIRE)--Aug. 2, 2016--
Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced that it has signed
a letter of intent to acquire substantially all of the assets of
Foodonics International, Inc. and its related entities doing business as
Dixie Egg Company. The assets to be acquired, subject to the completion
of this transaction, include commercial egg production and processing
facilities with capacity for approximately 1.6 million laying hens and
related feed production, milling and distribution facilities in Georgia,
Alabama and Florida. Dixie Egg Company also has contract arrangements
for an additional 1.5 million laying hens. In addition, Cal-Maine Foods
will acquire the Egg-Land’s Best, Inc. franchise with licensing rights
for portions of certain markets in Alabama, Florida and Georgia as well
as Puerto Rico, Bahamas and Cuba. The Company expects to close the
transaction in early October.
Cal-Maine Foods, Inc. is primarily engaged in the production, grading,
packing and sale of fresh shell eggs, including conventional, cage-free,
organic and nutritionally-enhanced eggs. The Company, which is
headquartered in Jackson, Mississippi, is the largest producer and
distributor of fresh shell eggs in the United States and
sells the majority of its shell eggs in states across the southwestern,
southeastern, mid-western and mid-Atlantic regions of the United States.
Statements contained in this press release that are not historical
facts are forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. The forward-looking
statements are based on management’s current intent, belief,
expectations, estimates and projections regarding our company and our
industry. These statements are not guarantees of future performance and
involve risks, uncertainties, assumptions and other factors that are
difficult to predict and may be beyond our control. The factors that
could cause actual results to differ materially from those projected in
the forward-looking statements include, among others, (i) the risk
factors set forth in the Company’s SEC filings (including its Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K), (ii) the risks and hazards inherent in the shell egg
business (including disease, pests, weather conditions and potential for
recall), (iii) changes in the demand for and market prices of shell eggs
and feed costs, (iv) our ability to predict and meet demand for
cage-free and other specialty eggs, (v) risks, changes or obligations
that could result from our future acquisition of new flocks or
businesses, (vi) adverse results in pending litigation matters and (vii)
risk that the pending transaction will not be completed. SEC filings may
be obtained from the SEC or the Company’s website, www.calmainefoods.com.
Readers are cautioned not to place undue reliance on forward-looking
statements because, while we believe the assumptions on which the
forward-looking statements are based are reasonable, there can be no
assurance that these forward-looking statements will prove to be
accurate. Further, the forward-looking statements included herein
are only made as of the respective dates thereof, or if no date is
stated, as of the date hereof. Except as otherwise required by law, we
disclaim any intent or obligation to publicly update these
forward-looking statements, whether as a result of new information,
future events or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160802006873/en/
Source: Cal-Maine Foods, Inc.
Cal-Maine Foods, Inc.
Dolph Baker, Chairman, President and CEO
or
Timothy
A. Dawson, Vice President and CFO
601-948-6813