Exhibit 99.1
-END-
Contacts:
Dolph Baker, Chairman and CEO
Max P. Bowman,
Vice President and CFO
(601) 948-6813
CAL-MAINE FOODS, INC. ACQUIRES REMAINING
INTEREST IN RED RIVER VALLEY EGG FARM
LLC
JACKSON, Miss. (May
12, 2021)
—
Cal-Maine Foods, Inc.
(NASDAQ: CALM) today
announced that the
Company has reached a definitive agreement to purchase the
remaining 50 percent membership interest
in Red
River Valley
Egg Farm,
LLC from
Rose Acre Farms, Inc.
The entity
will become
a wholly
owned
subsidiary
of
the
Company.
The
purchase
price
is
$48.5
million
for
the
balance
of
the
joint
venture’s
membership
interests.
Red
River
Valley
Egg
Farm,
LLC
owns
and
operates
a
specialty
shell
egg
production complex with approximately 1.7 million laying hens, pullet capacity, feed mill, processing plant,
related offices and
outbuildings and related
equipment located on
approximately 400 acres near
Bogata,
Texas.
The
Company
expects
to
close
the
transaction
by
the
end
of
the
month,
subject
to
customary
Commenting on
the announcement,
Dolph Baker,
chairman and
chief executive
officer of
Cal
-
Maine
Foods, Inc., stated, “We
have enjoyed a good working
relationship with Rose
Acre Farms since we
formed
this
partnership
and
are
pleased
to
assume
full
ownership
of
Red
River
Valley
Egg
Farm.
When
it
commenced operations in
2015, Red River
Valley Egg Farm
significantly increased
the availability of
cage-
free
and
other
specialty
eggs
to
meet
the
growing
consumer
demand
for
those
products,
and
we
look
forward to
continuing to
support our
valued customers
in this
important region.
Red River
Valley Egg
Farm’s
experienced management team will
remain in place and be
integrated into Cal-Maine’s already
deep roots
in Texas.
We believe
this transaction
will offer
us additional
opportunities to
expand our
production capacity
and to meet the anticipated growing demand for cage-free and specialty
eggs.”
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
and risks
or changes
that may
cause
conditions
to
completing
a
pending
acquisition
not
to
be
met,(vi)
risks
relating
to
the
evolving
COVID-19
pandemic, and
(vii) adverse
results in pending
litigation matters.
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.
