Golden Oval agrees to buy MoArk's liquid assets
Golden Oval Eggs, LLC (Renville, Minn.) and MoArk, LLC on May 23 announced an agreement for Golden Oval to purchase the liquid egg processing assets of the Egg Products Division of MoArk. The transaction is expected to be completed on or about July 1, 2006. MoArk, LLC will continue to operate its primary business, which is the production and marketing of shell eggs.
The transaction involves all five MoArk liquid egg products processing facilities, associated inventory, and other related assets. The facilities are located in Norco and Vernon, Calif.; Millersburg, Ohio; Abbeville, Ala.; and Neosho, Mo. A supply agreement for shell eggs from MoArk facilities and a licensing agreement for the use of the Land O'Lakes brand on liquid egg products are also included in the transaction. Additional details of the transaction will be available in Land O'Lakes' 8K filing at www.sec.gov.
"With this expansion into the further processed egg products business, Golden Oval Eggs will be better positioned for continued strategic growth, to provide greater shareholder value, and to offer expanded quality products and services," said Dana Persson, president and CEO of Golden Oval Eggs, LLC. "With both companies' commitment to customers and employees, combined with the experienced management and employees of MoArk, customers can expect business as usual and a seamless transition."
"We are pleased to have reached an agreement with Golden Oval Eggs, LLC as the purchaser of the assets of our Egg Products Division and we view the transaction as a natural fit for both companies," said MoArk president and CEO Craig Willardson. "We have had a successful business relationship with Golden Oval Eggs over the past several years and recognize their ability to grow the business going forward."
According to Persson, "This acquisition is a logical progression in Golden Oval Eggs' growth plan. Together with MoArk's expertise in further processing and marketing, we look forward to offering expanded products, services and opportunities for our customers. We are excited and eager to take advantage of the tremendous opportunities for all the stakeholders in this business."
In addition to expanding its business, Golden Oval has acquired a new chief operating officer and executive vice president of marketing in the person of Robert A. Harrington.
"Rob Harrington's experience in the value-added, branded food marketplace, along with success in achieving profitable growth, managing business acquisitions and integration, strengthening customer relationships and building high-performance teams will be a major asset to our organization," said CEO Dana Persson. "He has significant experience in retail, food service and industrial markets in branded, value-added nutritional foods."
Most recently, Harrington served as senior vice president of sales & marketing for Novartis Nutrition Corp. in Minneapolis, Minn. He led the sales and marketing efforts for retail, acute care, home care, long term care and industrial/inter-group businesses for this $600 million manufacturer of consumer and institutional medical nutrition products. Previously, Harrington was vice president of sales, Healthcare Food Service Division of Novartis Nutrition Corporation in Minneapolis. In this role, he helped launch Eggstro'dnaire, an innovative, low-cholesterol egg product for the food service industry.
About the Company
Golden Oval Eggs, LLC (www.goldenovaleggs.com) was established in 1994 as a new-generation value-added cooperative, created, owned, and directed by agricultural producers. On September 1, 2004, the 700 shareholders of Golden Oval Eggs changed the company's corporate structure to a Limited Liability Company (LLC). Today, it is a leader in the liquid egg industry, ranked among the top 10 producers and processors, serving customers throughout the United States and Canada.
MoArk, LLC, (www.moarkllc.com) a wholly-owned subsidiary of Land O'Lakes, is the nation's third-largest producer and marketer of shell eggs including branded and specialty eggs. MoArk does business in 45 states and has annual sales of about $500 million. MoArk will continue to operate in the shell egg business after the transaction is complete and maintain its position as a leading supplier of high-quality products to customers across the country.
Land O'Lakes, Inc. (www.landolakesinc.com) is a national farmer-owned food and agricultural cooperative with annual sales of more than $7 billion. Land O'Lakes does business in all 50 states and more than 50 countries. It is a leading marketer of a full line of dairy-based consumer, foodservice and food ingredient products across the United States; serves its international customers with a variety of food and animal feed ingredients; and provides farmers and ranchers with an extensive line of agricultural supplies (feed, seed, crop nutrients and crop protection products) and services.