CAL-Maine Foods Inc. announced last week that it has reached an agreement to acquire 50% of the membership interests of Delta Egg Farm LLC from Sunbest Foods of Iowa Inc., a Moark LLC affiliate.
Cal-Maine currently owns the remaining 50% of Delta Egg Farm, so the entity will become a wholly owned subsidiary of Cal-Maine.
"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," Dolph Baker, chairman, president and chief executive officer of Cal-Maine, said.
Pursuant to this agreement, Cal-Maine 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 a capacity for approximately 1.2 million laying hens that's located near Delta, Utah. It also has an organic egg production complex with a capacity for around 400,000 laying hens located near Chase, Kan.
Cal-Maine expects to close the transaction March 1.