Cal-Maine Foods announced on February 17 that it has reached an agreement to acquire 50 percent of the membership interests of Delta Egg Farm from Sunbest Foods of Iowa, Inc., a Moark affiliate. Cal-Maine Foods currently owns the remaining 50 percent of Delta Egg Farm, so Delta Egg Farm will become a wholly owned subsidiary of Cal-Maine Foods.
Pursuant to this agreement, Cal-Maine Foods will purchase the membership interests for a total of $17 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 a capacity for approximately 400,000 laying hens located near Chase, Kan. The transaction is expected to close on March 1.
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."