Brazilian entrepreneur Ricardo Faria, known as the “Egg King,” is making a major entry into the U.S. market with a $1.1 billion acquisition of Hillandale Farms, one of the country’s largest egg producers. The deal comes at a time when Avian flu outbreaks have driven egg prices to record highs across the United States.
According to the Financial Times, Faria’s privately owned holding group, Global Eggs, has agreed to purchase Hillandale from the Bethel family. The acquisition will significantly expand Global Eggs’ presence in North America and double its production capacity, pushing its 2024 projected revenue to $2 billion.
The U.S. egg market has been hit hard by Avian flu, which has led to the culling of millions of laying hens, creating supply shortages and skyrocketing prices. Earlier this year, the wholesale price of a dozen large white eggs reached unprecedented levels, prompting government efforts to explore increased imports to stabilize the market.
However, recent weeks have shown signs of price relief. According to the U.S. Department of Agriculture, egg prices dropped by 20% to $3.27 per dozen last week, though they remain significantly higher than a year ago.
Despite these fluctuations, Faria insists that the Hillandale acquisition was not driven by short-term market dynamics but rather by a long-term strategy for international expansion. “Americans love eggs. It’s a market with high consumption,” Faria told the Financial Times. “Eggs are the fastest-growing consumer good on the shelf or in supermarket trolleys.”
Hillandale Farms, based in Gettysburg, Pennsylvania, was founded in 1958 by Orland Bethel and has remained a family-run business ever since. The company’s vice-chair, Gregory Cessna, stated that Hillandale agreed to the deal because Faria is committed to sustaining and expanding the business.
Global Eggs, which operates in Brazil through Granja Faria, has been aggressively expanding into international markets. Last year, the company made its first overseas acquisition, purchasing Spain’s Grupo Hevo for €120 million.
Brazil’s agricultural sector continues to grow its influence in global food production. JBS, the world’s largest meatpacking company, also entered the egg industry in January, acquiring a half stake in fellow Brazilian company Mantiqueira in a deal valued at R$1.9 billion ($380 million).
As part of the Hillandale transaction, Brazilian investment bank BTG Pactual’s private equity division is investing $300 million in Global Eggs in exchange for an 11% stake. The company is also planning an initial public offering (IPO) in New York, signaling its ambitions for further expansion.
Faria, who was listed on Forbes Brazil’s billionaire list last year with an estimated wealth of R$17.5 billion ($3 billion), emphasized that the acquisition would not significantly impact Global Eggs’ financial stability. The deal involves some debt financing, but Faria confirmed that net borrowings would remain below one times EBITDA. Rabobank and BTG Pactual advised Global Eggs on the acquisition, while Houlihan Lokey advised Hillandale.
