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Cal-Maine Foods (NASDAQ: CALM) has announced the acquisition of Deal-Rite Feeds‘ assets in North Carolina, including two feed mills, storage facilities, grain, vehicles, equipment, and retail feed sales business located in Statesville and Union Grove. The acquisition, funded through available cash, strategically positions the facilities near CALM’s North Carolina shell egg production operations.
According to Sherman Miller, president and CEO, this acquisition will help manage production costs and drive efficiencies, as feed is a primary cost component in shell egg production. The proximity of these feed mills will enable lower-cost feed formulation, production, and delivery with reduced travel distances to farms, supporting CALM’s mission to be the most efficient and sustainable producer of fresh shell eggs and egg products.
Cal-Maine Foods (NASDAQ: CALM) ha annunciato l’acquisizione degli asset di Deal-Rite Feeds in Carolina del Nord, compresi due mulini per mangimi, strutture di stoccaggio, cereali, veicoli, attrezzature e un’attività di vendita al dettaglio di mangimi situata a Statesville e Union Grove. L’acquisizione, finanziata attraverso disponibilità di cassa, posiziona strategicamente gli impianti vicino alle operazioni di produzione di uova in guscio di CALM in Carolina del Nord.
Secondo Sherman Miller, presidente e CEO, questa acquisizione aiuterà a gestire i costi di produzione e a migliorare l’efficienza, poiché il mangime è un componente di costo primario nella produzione di uova in guscio. La vicinanza di questi mulini per mangimi permetterà una formulazione, produzione e consegna del mangime a costi inferiori, riducendo le distanze di viaggio verso le fattorie, sostenendo la missione di CALM di essere il produttore più efficiente e sostenibile di uova fresche in guscio e prodotti a base di uova.
Cal-Maine Foods (NASDAQ: CALM) ha anunciado la adquisición de los activos de Deal-Rite Feeds en Carolina del Norte, incluyendo dos fábricas de piensos, instalaciones de almacenamiento, granos, vehículos, equipos y un negocio de venta al por menor de piensos ubicado en Statesville y Union Grove. La adquisición, financiada a través de efectivo disponible, posiciona estratégicamente las instalaciones cerca de las operaciones de producción de huevos en cáscara de CALM en Carolina del Norte.
Según Sherman Miller, presidente y CEO, esta adquisición ayudará a gestionar los costos de producción y a impulsar la eficiencia, ya que el pienso es un componente de costo principal en la producción de huevos en cáscara. La proximidad de estas fábricas de piensos permitirá una formulación, producción y entrega de pienso a un costo más bajo, reduciendo las distancias de transporte a las granjas, apoyando la misión de CALM de ser el productor más eficiente y sostenible de huevos frescos en cáscara y productos derivados del huevo.
Cal-Maine Foods (NASDAQ: CALM)는 노스캐롤라이나에 있는 Deal-Rite Feeds의 자산을 인수했다고 발표했습니다. 인수에는 두 개의 사료 공장, 저장 시설, 곡물, 차량, 장비, Statesville 및 Union Grove에 위치한 소매 사료 판매 사업이 포함됩니다. 이번 인수는 사용 가능한 현금으로 자금 조달했으며, CALM의 노스캐롤라이나에서의 껍질 계란 생산 운영 근처에 시설을 전략적으로 배치합니다.
셰르먼 밀러 사장 겸 CEO에 따르면, 이 인수는 생산 비용을 관리하고 효율성을 높이는 데 도움이 되며, 사료는 껍질 계란 생산의 주요 비용 요소입니다. 이러한 사료 공장의 근접성은 사료의 저비용 조제, 생산 및 공급을 가능하게 하여 농장까지의 이동 거리를 줄이고, CALM의 신선한 껍질 계란 및 계란 제품의 가장 효율적이고 지속 가능한 생산자가 되겠다는 사명을 지원합니다.
Cal-Maine Foods (NASDAQ: CALM) a annoncé l’acquisition des actifs de Deal-Rite Feeds en Caroline du Nord, y compris deux usines de fabrication d’aliments, des installations de stockage, des céréales, des véhicules, des équipements et une activité de vente au détail d’aliments située à Statesville et Union Grove. L’acquisition, financée par des liquidités disponibles, positionne stratégiquement les installations près des opérations de production d’œufs en coquille de CALM en Caroline du Nord.
Selon Sherman Miller, président et directeur général, cette acquisition aidera à gérer les coûts de production et à accroître l’efficacité, l’alimentation étant un élément de coût principal dans la production d’œufs en coquille. La proximité de ces usines d’aliments permettra une formulation, une production et une livraison d’aliments à faible coût, tout en réduisant les distances de transport vers les exploitations agricoles, soutenant ainsi la mission de CALM d’être le producteur le plus efficace et durable d’œufs frais en coquille et de produits à base d’œufs.
Cal-Maine Foods (NASDAQ: CALM) hat die Übernahme von Deal-Rite Feeds Vermögenswerten in North Carolina bekannt gegeben, einschließlich zweier Futtermühlen, Lagerstätten, Getreide, Fahrzeuge, Ausrüstung und einem Einzelhandelsgeschäft für Futtermittel in Statesville und Union Grove. Die Übernahme, die durch verfügbare Barmittel finanziert wurde, positioniert die Anlagen strategisch in der Nähe der Produktionsbetriebe von Schalen-Eiern in North Carolina von CALM.
Laut Sherman Miller, Präsident und CEO, wird diese Übernahme helfen, die Produktionskosten zu steuern und Effizienzen zu fördern, da Futter einen wesentlichen Kostenfaktor in der Schalen-Ei-Produktion darstellt. Die Nähe dieser Futtermühlen ermöglicht eine kostengünstigere Futterformulierung, Produktion und Lieferung mit reduzierten Fahrtwegen zu den Farmen und unterstützt CALMs Mission, der effizienteste und nachhaltigste Produzent von frischen Schalen-Eiern und Eierprodukten zu sein.
Positive
- Strategic acquisition of feed mills near existing production facilities
- Expected reduction in feed production and transportation costs
- Vertical integration strengthening operational efficiency
- Cash-funded acquisition indicating strong liquidity position
Negative
- Initial cash outlay reducing available cash reserves
Insights
The strategic acquisition of Deal-Rite Feeds’ assets marks a significant vertical integration move for Cal-Maine Foods, addressing a important aspect of their operational cost structure. Feed costs typically represent 60-65% of shell egg production expenses, making this acquisition particularly impactful for long-term profitability.
The deal’s strategic value stems from three key factors:
- Vertical integration that provides direct control over feed quality and costs
- Geographic optimization with facilities in close proximity to production sites
- Enhanced supply chain resilience through owned infrastructure
The acquisition’s timing is particularly advantageous given the current market dynamics in the egg industry, where feed cost management has become increasingly critical for maintaining competitive margins. By bringing feed production in-house, CALM can potentially realize cost savings through reduced transportation expenses, better inventory management and improved quality control.
The North Carolina location is strategically significant, as it’s part of CALM’s growing production footprint in the Southeast. This regional strengthening could yield additional benefits through economies of scale and improved market responsiveness. While the specific transaction value wasn’t disclosed, CALM’s strong cash position (no debt and substantial cash reserves) suggests this acquisition can be comfortably absorbed without impacting financial flexibility.
Looking ahead, this vertical integration move positions CALM to better weather feed price volatility and potentially improve gross margins through operational synergies. The ability to formulate custom feed blends in-house also provides greater control over product quality and potential differentiation in specialty egg categories, which typically command premium pricing.
RIDGELAND, Miss.–(BUSINESS WIRE)– Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced that the Company has acquired certain assets of Deal-Rite Feeds, Inc. and its affiliated entities, including two feed mills, storage facilities, usable grain, vehicles, related equipment and retail feed sales business located in Statesville and Union Grove, North Carolina. The Company is funding the acquisition with available cash on hand.
Sherman Miller, president and chief executive officer of Cal-Maine Foods, Inc., said, “We are pleased to have the opportunity to acquire these feed mills and operations, which are strategically located in close proximity to our North Carolina shell egg production facilities. As we continue to expand contract production in this area, we also look for ways to effectively manage our production costs and drive efficiencies. Feed is a primary cost component in the production of shell eggs, and the quality and composition of feed are critical factors related to the health of our hens and the nutritional value of shell eggs. With the addition of these feed mill operations in North Carolina, we can formulate, produce and deliver feed at a lower cost with shorter travel required to reach the respective farms. We remain committed to our mission to be the most efficient and sustainable producer of fresh shell eggs and egg products, and we will look for additional opportunities to further support our growth strategy.”
About Cal-Maine Foods
Cal-Maine Foods, Inc. is primarily 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, which is headquartered in Ridgeland, Mississippi, is the largest producer and distributor of fresh shell eggs in the nation and sells most of its shell eggs throughout the majority of the United States.
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. 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), including but not limited to the current outbreak of highly pathogenic avian influenza affecting poultry in the U.S., Canada and other countries that was first detected in commercial flocks in the U.S. in February 2022 and that first impacted our flocks in December 2023, (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 recent or future acquisitions of new flocks or businesses and risks or changes that may cause conditions to completing a pending acquisition not to be met, (vi) risks relating to changes in inflation and interest rates, (vii) our ability to retain existing customers, acquire new customers and grow our product mix, (viii) adverse results in pending litigation matters, and (ix) global instability, including as a result of the war in Ukraine, the conflicts in Israel and surrounding areas and attacks on shipping in the Red Sea. 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: https://www.businesswire.com/news/home/20250203793763/en/
Sherman Miller, President and CEO
Max P. Bowman, Vice President and CFO
(601) 948-6813
Source: Cal-Maine Foods, Inc.
FAQ
What assets did Cal-Maine Foods (CALM) acquire from Deal-Rite Feeds?
CALM acquired two feed mills, storage facilities, usable grain, vehicles, related equipment, and retail feed sales business located in Statesville and Union Grove, North Carolina.
How is Cal-Maine Foods funding the Deal-Rite Feeds acquisition?
The acquisition is being funded with available cash on hand.
What are the expected cost benefits of CALM’s North Carolina feed mill acquisition?
The acquisition is expected to lower costs through reduced travel distances and more efficient feed formulation, production, and delivery to nearby shell egg production facilities.
How does the Deal-Rite Feeds acquisition align with CALM’s strategic goals?
The acquisition supports CALM’s mission to be the most efficient and sustainable producer of fresh shell eggs by enabling better cost management and operational efficiencies in feed production.
