RIDGELAND, MISS. — Cal-Maine Foods Inc. acquired Galena, Md.-based egg producer ISE America Inc. in a $110 million cash deal.
Under the agreement, announced after the market close on June 29, Cal-Maine adds ISE commercial shell egg production and processing facilities with a current capacity of approximately 4.7 million laying hens — including 1 million cage-free laying hens — plus 1.2 million pullets, feed mills, about 4,000 acres of land, inventories and an egg products-breaking facility.
Ridgeland, Miss.-based Cal-Maine, the largest US producer and distributor of fresh shell eggs, said the acquired ISE assets also include an “extensive customer distribution network” across the Northeast and Mid-Atlantic and production operations in Maryland, New Jersey, Delaware and South Carolina.
“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,” said Sherman Miller, president and chief executive officer of Cal-Maine Foods. “The added production and distribution capabilities will allow us to serve new customers and expand capacity, particularly in the Northeast, which is largely a new territory for Cal-Maine Foods. We are also acquiring production assets for the first time in Maryland, New Jersey and Delaware.”
Cal-Maine said it sells most of its shell eggs in the Southwest, Southeast, Midwest and Mid-Atlantic and is mainly engaged in the production, grading, packaging, marketing and distribution of fresh shell eggs, including conventional, cage-free, organic, brown, free-range, pasture-raised and nutritionally enhanced eggs. The company said it has 44.3 million layer hens — 75% more than its nearest US competitor — and operates 26 feed mills, 44 production facilities and 44 processing and packaging facilities, distributing to more than 60,000 retail locations.
“ISE has a long history in the egg production business and enjoys a solid reputation in the marketplace,” Miller added. “We will continue to honor this important legacy as we build new connections and customer relationships. Cal-Maine Foods has a strong record of driving value from our acquired operations, with a proven operating model. We welcome the dedicated ISE operations team to the Cal-Maine Foods family and look forward to a successful integration.”
The ISE transaction marks Cal-Maine’s second acquisition this year. In March, the company finalized a deal to buy a closed broiler processing plant, hatchery and feed mill in Dexter, Mo., from Tyson Foods Inc., with plans to remodel and repurpose the facility for shell egg and egg product production. Also, in October 2023, Cal-Maine completed the acquisition of Fassio Egg Farms Inc.’s commercial shell egg production and processing business, with assets including about 1.2 million laying hens (primarily cage-free), feed mill, pullets, fertilizer production and land in Erda, Utah, outside Salt Lake City.