Rembrandt Enterprises, Inc., an egg producer and processor in Rembrandt and other Midwestern locations, announced this week that it will acquire Golden Oval Eggs, LLC, a leader in liquid egg production and further processed egg products.
An agreement has been made to obtain assets of Golden Oval, which operates egg production facilities in Minnesota and Iowa with further processing and distribution sites in Alabama, Missouri and California. The deal is for $123.8 million in cash and assumption of the Golden Oval debt, according to a report by the St. Paul Pioneer Press. The deal won unanimous approval from boards of both companies and is expected to close in early 2009.
The proposed transaction is subject to regulatory approvals. Golden Oval will seek member approval once regulatory approvals are granted.
Golden Oval Eggs CEO Dana Persson said his company had several opportunities to partner with other firms. "We chose Rembrandt Enterprises, Inc. because we have common philosophy in how our companies value and work with customers, employees and communities. We also share a vision around outstanding customer service, product quality, and employee development...we believe this agreement is in the best long-term interests of Golden Oval Eggs' customers, employees, unit holders, and communities during these challenging economic times. Rembrandt Enterprises, Inc. adds additional capabilities to the company we built."
Dave Rettig, CEO of Rembrandt Enterprises, Inc., said, "We felt that Golden Oval Eggs was complimentary to Rembrandt Enterprises in terms of the business, the people and the culture. With the combination, Rembrandt will be able to offer customers an efficient vertically-integrated solution to their egg product needs throughout the country..."
Golden Oval was formed as a cooperative in 1994 and gained national attention as an example of how a farming community could generate economic development. The egg production and processing company is based in Renville, Minn. Founded in 2000, Rembrandt Enterprises, Inc. is based in Rembrandt, with approximately 250 workers.