Pete & Gerry’s Organics, a prominent player in the US free-range egg sector, has successfully acquired the local company Farmers Hen House for an undisclosed amount.
Farmers Hen House, located in Kalona, Iowa, is known for its organic, free-range, and pasture-raised shell eggs sourced from local family farms.
This strategic acquisition will integrate Farmers Hen House into the Pete & Gerry’s portfolio, which features brands like Pete & Gerry’s Organic, Pete & Gerry’s Pasture-Raised, and Nellie’s Free Range eggs.
According to a company statement, both businesses have experienced approximately 50% growth since 2021, a result of the rising consumer demand for premium eggs.
Pete & Gerry’s CEO, Tom Flocco, remarked: “Joining together with another purpose-driven company like Farmers Hen House, which shares in our mission to protect hen welfare and the American family farm, felt like a natural fit.”
As a result of the acquisition, Pete & Gerry’s will benefit from an expanded network comprising more than 90 family farms and a modern processing facility in Iowa. This will bolster growth in key areas such as the Midwest and West.
By incorporating Farmers Hen House’s network, Pete & Gerry’s will enhance its reach to nearly 300 family farms. This expansion will ensure a reliable supply of ethically sourced eggs for consumers and retail partners alike.
The US egg market has faced significant challenges due to the highly contagious avian flu. Reports from November and December indicated that 17.2 million egg-laying hens died as a result of this virus, according to the US Department of Agriculture.
In May 2021, Pete and Gerry’s Organics sold its majority stake to the Los Angeles-based private equity firm Butterfly. Following this investment, British Columbia Investment Management Corp also became a minority shareholder in the business.
