The dismantling of Land O'Lakes unprofitable egg subsidiary began this week with the sale of Moark's liquid egg assets to Renville, Minn.-based Golden Oval Eggs, according to a current report and news release filed Tuesday with the Securities and Exchange Commission.
The deal, which is expected to be completed by July 1, involves processing facilities in Neosho, Millersburg, Ohio, Abbeyville, Ala., Vernon, Calif., and Norco, Calif.
The filing said Moark will contine its primary business, the production of marketing and shell eggs.
"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."
In the filing, Dana Persson, president and CEO of Golden Oval Eggs, said,
"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. 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."