Golden Oval Eggs is to purchase the liquid egg processing assets of the Egg Products Division of MoArk. The transaction is expected to be completed on or about July 1, 2006.
MoArk will continue to operate its primary business, which is the production and marketing of shell eggs.
The transaction involves all five MoArk liquid egg products processing facilities, associated inventory, and other related assets. The facilities are located in Norco and Vernon, California; Millersburg, Ohio; Abbeville, Alabama; and Neosho, Missouri.
A supply agreement for shell eggs from MoArk facilities and a licensing agreement for the use of the LAND O LAKES brand on liquid egg products are also included in the transaction.
“With this expansion into the further processed egg products business, Golden Oval Eggs will be better positioned for continued strategic growth, to provide greater shareholder value, and to offer expanded quality products and services,” said Dana Persson, president and chief executive officer of Golden Oval Eggs. “With both companies’ commitment to customers and employees, combined with the experienced management and employees of MoArk, customers can expect business as usual and a seamless transition.”
“We are pleased to have reached an agreement with Golden Oval Eggs as the purchaser of the assets of our Egg Products Division and we view the transaction as a natural fit for both companies,” said MoArk president and chief executive officer Craig Willardson. “We have had a successful business relationship with Golden Oval Eggs over the past several years and recognize their ability to grow the business going forward.”
Persson added: “This acquisition is a logical progression in Golden Oval Eggs’ growth plan. Together with MoArk’s expertise in further processing and marketing, we look forward to offering expanded products, services and opportunities for our customers. We are excited and eager to take advantage of the tremendous opportunities for all the stakeholders in this business.”