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.
Statements contained in this press release that are not historical
facts are forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. The
forward-looking statements are based on management’s current intent,
belief, expectations, estimates and projections regarding our company
and our industry. These statements are not guarantees of future
performance and involve risks, uncertainties, assumptions and other
factors that are difficult to predict and may be beyond our control.
The factors that could cause actual results to differ materially from
those projected in the forward-looking statements include, among others,
(i) the risk factors set forth in Item 1A of our Annual Report on Form
10-K for the fiscal year ended June 1, 2013, as updated by our
subsequent Quarterly Reports on Form 10-Q and Current Reports on Form
8-K), (ii) the risks and hazards inherent in the shell egg business
(including disease, pests, weather conditions and potential for recall),
(iii) changes in the demand for and market prices of shell eggs and feed
costs, (iv) risks, changes or obligations that could result from our
future acquisition of new flocks or businesses, and (v) adverse
results in pending litigation matters. SEC filings may be obtained
from the SEC or the Company’s website, www.calmainefoods.com.
Readers are cautioned not to place undue reliance on forward-looking
statements because, while we believe the assumptions on which the
forward-looking statements are based are reasonable, there can be no
assurance that these forward-looking statements will prove to be
accurate. Further, the forward-looking statements included herein
are only made as of the respective dates thereof, or if no date is
stated, as of the date hereof. Except as otherwise required
by law, we disclaim any intent or obligation to update publicly these
forward-looking statements, whether as a result of new information,
future events or otherwise.
Copyright Business Wire 2014