Cal-Maine Foods, a US-based egg producer, has signed a deal to take over the remaining 50% stake in Delta Egg Farm from Sunbest Foods of Iowa for $17m.
With this development, Delta Egg Farm will become a wholly owned subsidiary of Cal-Maine Foods.
Delta Egg Farm runs a feed mill and egg production complex near Delta, Utah, with capacity for approximately 1.2 million laying hens. It also operates an organic egg production site near Chase, Kansas, with capacity for around 400,000 laying hens.
The transaction is expected to be completed by 1 March 2014.
Cal-Maine Foods president and CEO Dolph Baker 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 is involved in the production, grading, packing and sale of shell eggs, including conventional, cage-free, organic and nutritionally-enhanced eggs.