Cal-Maine Foods, Inc. Announces Letter of Intent to Acquire Egg Production Assets of Foodonics
International
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.
Cal-Maine Foods, Inc.
Dolph Baker, Chairman, President and CEO
or
Timothy A. Dawson, Vice President and CFO
601-948-6813
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