MacFarms owns the second largest macadamia nut processing facility in Hawaii and markets macadamia nuts both industrially and under the brand names MacFarms, Kona Select and Hula Princess.

The deal is expected to close in early 2007 after the completion of due diligence and approvals of the boards of directors of the companies involved. Terms were not disclosed.

'This transaction is very important to the future of our company, our unit holders and the Hawaii macadamia industry,' said Dennis Simonis, president and chief executive officer of ML Macadamia Orchards. 'The synergies from the combination of the assets and expertise of these two fine companies will provide new opportunities for growth and value to our shareholders and will help restore Hawaii's position as a global leader in the macadamia industry.'

ML Macadamia Orchards is the world's largest grower of macadamia nuts, owning or leasing 4,169 acres of orchards, where macadamia yields are the highest in the world. All of its orchards, assets and employees are based on the Big Island.