Pete & Gerry’s Organics, a free-range egg business in the US, has acquired local peer Farmers Hen House for an undisclosed sum.

Based in Kalona, Iowa, Farmers Hen House supplies organic, free-range, and pasture-raised shell eggs, sourced from local family farms.

The acquisition will bring Farmers Hen House under the Pete & Gerry’s umbrella, which includes brands such as Pete & Gerry's Organic, Pete & Gerry’s Pasture-Raised and Nellie’s Free Range eggs.

In a statement, Pete & Gerry’s said both companies have experienced nearly 50% growth since 2021 due to the rising demand for premium eggs.

Pete & Gerry’s CEO Tom Flocco said: “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.”

The acquisition will add more than 90 family farms and a “modern” processing facility in Iowa to Pete & Gerry’s network, supporting its growth in regions such as the midwest and west.

By integrating Farmers Hen House’s network, Pete & Gerry’s will grow its reach to nearly 300 family farms, ensuring a “reliable” supply of “ethically” sourced eggs for both consumers and retail partners.

The US egg mrket has been badly impacted by the highly contagious avian flu. In November and December, 17.2m egg-laying hens died as a result of the virus, according to the US Department of Agriculture..

In May 2021, Pete and Gerry’s Organics sold its majority stake to Los Angeles-based private equity firm Butterfly. Following this investment, British Columbia Investment Management Corp, became a minority shareholder in the business.