February 18, 2014

Cal-Maine Foods to fully acquire Delta Egg Farm

Cal-Maine Foods, Inc. has reached an agreement to acquire 50% of the membership interests of Delta Egg Farm, LLC from Sunbest Foods of Iowa, Inc., a Moark, LLC affiliate, for a total of US$17.0 million.

The company currently owns the remaining 50% of Delta Egg Farm, LLC, so the entity will become a wholly owned subsidiary of the company. 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.

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. It is the largest producer and distributor of fresh shell eggs in the US and sells the majority of its shell eggs in approximately 29 states across the south-western, south-eastern, mid-western and mid-Atlantic regions of the US.