By Poultry Business News

Global Eggs Acquires U.S.-Based Hillandale Farms for $1.1 Billion

In a transformative deal poised to redefine the global egg production industry, Global Eggs, led by Brazilian entrepreneur Ricardo Faria, has announced its acquisition of U.S.-based Hillandale Farms for $1.1 billion. Set to finalize in March 2025, this landmark transaction not only amplifies Global Eggs’ international reach but also arrives at a pivotal moment for the U.S. egg market, which is reeling from supply shortages triggered by widespread bird flu outbreaks. Faria, however, sees beyond the immediate crisis, emphasizing a broader vision: “This acquisition is not about taking advantage of a temporary situation but rather about believing in the long-term potential of the egg market.”

A Rising Power: Brazil’s Egg King

Founded in 2024, Global Eggs has swiftly established itself as a powerhouse in the egg production sector. Under Faria’s leadership—earning him the moniker “Egg King” in Brazil—the company operates through two key subsidiaries: Granja Faria in Brazil and Hevo Group in Spain. Granja Faria, launched in 2006, ranks among Brazil’s top egg producers, churning out approximately 8 million eggs daily. Meanwhile, Hevo Group, acquired in November 2024 for 120 million euros, bolsters Global Eggs’ European footprint as Spain’s second-largest egg producer, with an annual output exceeding 70 million dozen eggs. This acquisition of Hillandale Farms marks Global Eggs’ bold entry into the U.S., cementing its status as a global contender.

Hillandale Farms: A U.S. Egg Industry Stalwart

Hillandale Farms brings its own storied legacy to the table. Established in 1958 by Orland Bethel, the Gettysburg, Pennsylvania-based company has grown into one of the top five egg producers in the United States. Managing roughly 18.34 million laying hens—accounting for approximately 4.8% of the U.S. total based on 2023 figures—Hillandale operates across Pennsylvania, Ohio, and Connecticut. While the company has enjoyed decades of success, it has not been without challenges, including a salmonella outbreak in 2010 and a price gouging lawsuit during the COVID-19 pandemic in 2020. Now, as part of Global Eggs, Hillandale stands to benefit from enhanced resources and international expertise.

The Financial Framework

The $1.1 billion acquisition is bolstered by significant financial support from BTG Pactual, a leading Brazilian investment bank. BTG Pactual’s $300 million investment secures an 11% stake in Global Eggs, valuing the company at approximately $2.73 billion post-transaction. While the financing likely blends equity and debt, specific details on the debt structure remain undisclosed. This infusion of capital underscores the deal’s scale and signals strong confidence in Global Eggs’ growth trajectory.

A Market in Flux: U.S. Egg Industry Challenges

The timing of this acquisition aligns with unprecedented turbulence in the U.S. egg market. Highly pathogenic avian influenza (HPAI) outbreaks have decimated flocks, with over 20 million laying hens culled in the final quarter of 2024 alone. The result? Severe supply shortages and soaring prices—by January 2025, a dozen large eggs retails for nearly $5, a staggering 157% jump from pre-outbreak levels. To mitigate the shortfall, the U.S. has turned to imports, including from Brazil, highlighting the strategic foresight of Global Eggs’ expansion. While Faria frames the move as a long-term play, the immediate opportunity to address U.S. demand is undeniable.

Strategic Investments and Industry Impact

With this acquisition, Global Eggs emerges as a global leader, uniting operations across Brazil, Spain, and the United States. The combined entity, which posted revenues exceeding $2 billion in 2024 from its existing operations, is well-positioned to capitalize on economies of scale and cross-border expertise. Key synergies include bolstered biosecurity measures—a critical asset amid U.S. bird flu concerns—and expanded market access for Brazilian and Spanish egg products. This deal also reflects a growing trend of consolidation in the egg industry, a shift that may draw regulatory attention given past antitrust scrutiny of U.S. producers.

Looking Ahead: Analysis

The acquisition of Hillandale Farms by Global Eggs is more than a business transaction—it’s a strategic mastermove that marries ambition with opportunity. As Global Eggs integrates Hillandale into its fold by March 2025, the poultry industry will be keenly observing its impact on pricing, supply chains, and competitive dynamics. For now, one thing is clear: Brazil’s egg-King’s vision is cracking open new possibilities, positioning Global Eggs as an company with a bright future ahead.