Delta Egg Farm Now Wholly Owned by Cal-Maine19 February 2014
US - Cal-Maine Foods, Inc. has agreed to acquire the remaining interests in Delta Egg Farm, LLC.
Cal-Maine Foods, Inc. has announced that it has reached an agreement to acquire 50 per cent of the membership interests of Delta Egg Farm, LLC from Sunbest Foods of Iowa, Inc., a Moark, LLC affiliate.
The Company currently owns the remaining 50 per cent of Delta Egg Farm, LLC, so the entity will become a wholly owned subsidiary of the Company. Pursuant to this agreement, Cal-Maine Foods will purchase the membership interests for a total of $17.0 million.
Delta Egg Farm, LLC owns and operates a feed mill and egg production complex with capacity for approximately 1.2 million laying hens, located near Delta, Utah, and an organic egg production complex with capacity for approximately 400,000 laying hens located near Chase, Kansas. The Company expects to close the transaction effective on 1 March 2014.
Commenting on the announcement, Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, Inc., said, “While we have enjoyed a long-term working relationship with Moark and Sunbest Foods of Iowa, we are excited about the opportunity to take over the ownership and management of Delta Egg Farm, LLC. We look forward to the opportunity to continue to expand our business and provide greater value for our shareholders.”
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