Cal-Maine to buy remaining stake in egg producer
Feb. 18, 2014
by Eric Schroeder
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JACKSON, MISS. — Cal-Maine Foods, Inc. has reached an agreement to acquire 50% of the membership interests of Delta Egg Farm, L.L.C. from Sunbest Foods of Iowa, Inc., a Moark, L.L.C. affiliate, for $17 million. Cal-Maine already currently owns the remaining 50% of Delta Egg Farm, paving the way for the entity to become a wholly owned subsidiary of Cal-Maine. The transaction is expected to close by March 1.
Delta Egg Farm 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, Kas.
“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, L.L.C.,” said Dolph Baker, chairman, president and chief executive officer of Cal-Maine. “We look forward to the opportunity to continue to expand our business and provide greater value for our shareholders.”
Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing and sale of fresh shell eggs, including conventional, cage-free, organic and nutritionally-enhanced eggs. The company is the largest producer and distributor of fresh shell eggs in the United States and sells the majority of its shell eggs in approximately 29 states across the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States.