Cal-Maine Foods acquires remaining stake in Delta Egg Farm

Cal-Maine Foods has completed its takeover of the remaining 50% stake in Delta Egg Farm from Sunbest Foods of Iowa.

With this development, Delta Egg Farm will now operate as a wholly-owned subsidiary of Cal-Maine Foods.

An agreement to this effect was signed in February, pursuant to which Cal-Maine agreed to acquire 50% of the membership interests which it does not own in Delta Egg Farm for $17m.

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

Delta Egg Farm owns and runs a feed mill and an egg production complex in Delta, Utah, and an organic egg production complex in Chase, Kansas.

The Utah complex houses around 1.2 million laying hens, while the Kansas site holds approximately 400,000 laying hens.

Headquartered in Jackson, Mississippi, Cal-Maine Foods engages in the production, grading, packing and sale of shell eggs, including conventional, cage-free, organic and nutritionally-enhanced eggs.

The company produces and distributes the majority of its fresh shell eggs in approximately 29 states across the south-western, south-eastern, mid-western and mid-Atlantic regions of the US.

For the full-year 2013, Cal-Maine reported $1.3bn in revenues with net profit of $50.4m.

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Image: Delta Egg Farm owns and runs a feed mill and an egg production complex in Delta, Utah, and an organic egg production complex in Chase, Kansas. Photo courtesy of amenic181 at FreeDigitalPhotos.net.