US: Cal-Maine buys Sunbest stake in egg farm

By Hannah Abdulla | 18 February 2014

Cal-Maine now owns the entire assets of Delta Egg Farm

Cal-Maine now owns the entire assets of Delta Egg Farm

US egg producer Cal-Maine Foods has announced it is to acquire the remaining half of its Delta Egg Farm venture from partner Sunbest Foods of Iowa in a US$17m deal.

Sunbest Foods is an affiliate of US egg distributor Moark. The transaction is expected to close by 1 March.

Cal-Maine chairman, president and CEO Dolph Baker 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."

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 in Utah. It also has an organic egg production complex with capacity for approximately 400,000 laying hens near Chase in Kansas.

Show the press release

Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced that it has reached an agreement to acquire 50 percent 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 percent 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 March 1, 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."

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, 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.

Original source: Cal-Maine

Sectors: Fresh produce, Mergers & acquisitions

Companies: Cal-Maine Foods

View next/previous articles

Currently reading -

US: Cal-Maine buys Sunbest stake in egg farm

There are currently no comments on this article

Be the first to comment on this article

Related research

Global Dairy Food Market: Merger and Acquisitions February 2014

The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global dairy food market during February 2014....

Related articles

US: Prices, volumes boost Cal-Maine results

US egg supplier Cal-Maine Foods has reported higher nine-month sales and profits, helped by increased volumes and improved selling prices.

Welcome to the home of food information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page