Cal-Maine Foods, Inc. announces the acquisition of egg production assets from ISE America, Inc.

RIDGELAND, Miss., June 28, 2024–(BUSINESS WIRE)–Cal-Maine Foods, Inc. (NASDAQ: CALM) (“Cal-Maine Foods” or the “Company”) today announced that the Company has completed the acquisition of substantially all of the assets of ISE America, Inc. and certain of its affiliates (“ISE”) for approximately $110 million. Cal-Maine Foods is financing the acquisition with available cash. The acquired ISE assets include commercial shell egg production and processing facilities with a current capacity of approximately 4.7 million laying hens, including 1.0 million cage-free hens and 1.2 million chicks, feed mills, approximately 4,000 acres of land, inventory and an egg products crushing facility. The acquired assets also include an extensive distribution network of customers in the Northeast and Mid-Atlantic states and manufacturing facilities in Maryland, New Jersey, Delaware and South Carolina.

Commenting on the announcement, Sherman Miller, President and Chief Executive Officer of Cal-Maine Foods, Inc., stated, “We are excited about the opportunity to significantly expand our market reach in the Northeast and Mid-Atlantic with the acquisition of these ISE assets. The additional manufacturing and distribution capabilities will allow us to serve new customers and expand production capacity, particularly in the Northeast, which is largely new territory for Cal-Maine Foods. For the first time, we are also acquiring manufacturing assets in Maryland, New Jersey and Delaware. ISE has a long history in the egg industry and a solid reputation in the marketplace. We will continue to honor this important legacy by building new connections and customer relationships that generate value from our acquired businesses through our proven operating model. We welcome the dedicated ISE operating team to the Cal-Maine Foods family and look forward to a successful integration. Working together, we have a unique opportunity to deliver greater value to both our customers and shareholders.”

About Cal-Maine Foods

Cal-Maine Foods, Inc. is principally 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 Ridgeland, Mississippi-based company is the largest producer and distributor of fresh shell eggs in the United States and sells the majority of its shell eggs in states in the southwest, southeast, midwest and mid-Atlantic regions of Australia. United States.

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Forward-looking statements

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. Forward-looking statements are based on management’s current intentions, beliefs, expectations, estimates and projections regarding our company and 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. Factors that could cause actual results to differ materially from those projected in forward-looking statements include, but are not limited to: (i) risk factors set forth in the Company’s filings with the SEC (including its Annual Reports on Form 10-K, quarterly on Form 10-Q and current reports on Form 8-K), (ii) risks and hazards associated with the shell egg business (including diseases, pests, weather conditions and potential recalls), including, but not limited to, the recent outbreak highly pathogenic avian influenza affecting poultry in the US, Canada and other countries, which was first detected in US commercial flocks in February 2022 and which first affected our flocks in December 2023, (iii) changes in demand on shell eggs and their market prices and feed costs, (iv) our ability to anticipate and meet demand for cage-free and other specialty eggs, (v) risks, changes or liabilities that may result from our future acquisition of new flocks or businesses and the risks or changes that may cause the conditions to complete the pending acquisition not to be completed, (vi) risks associated with increased costs and higher and potentially further increases in inflation and interest rates, (vii) our ability to retain existing customers, attract new customers and expansion of our product portfolio, (viii) unfavorable outcomes in ongoing legal proceedings and (ix) global instability, including as a result of the war in Ukraine, the Israel-Hamas conflict and attacks on shipping in the Red Sea. SEC filings may be obtained from the SEC or on the Company’s website, www.calmainefoods.com. Readers are cautioned not to place undue reliance on forward-looking statements because, although we believe that the assumptions on which the forward-looking statements are based are reasonable, we cannot be certain that these forward-looking statements will prove to be accurate. Moreover, the forward-looking statements contained herein are made only as of their respective dates or, if no date is specified, as of the date hereof. Except as otherwise required by law, we have no intention or obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise.

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Communication

Sherman Miller, President and CEO
Max P. Bowman, vice president and chief financial officer
(601) 948-6813