US egg producer, Cal-Maine Foods, has reached an agreement to acquire 50% of the membership interests of Delta Egg Farm, from Sunbest Foods of Iowa, a Moark, affiliate.
The company currently owns the remaining 50% of Delta Egg Farm, 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, 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 March 1, 2014.
Commenting on the announcement, Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, 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. We look forward to the opportunity to continue to expand our business and provide greater value for our shareholders."
Cal-Maine Foods, 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, which is headquartered in Jackson, Mississippi, 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.