Cal-Maine Foods, a U.S. egg producer and distributor said Friday it plans to acquire Tyson Foods’ recently-closed broiler processing plant, hatchery, and feed mill in Dexter, Missouri. The egg company plans to repurpose the assets for use in egg and egg product production.
Cal-Maine Foods will initially convert the meat producer’s broiler processing plant into an egg grading facility.
“This transaction is consistent with our growth strategy to expand our business through selective acquisitions in addition to our organic growth initiatives,” said Sherman Miller, president and CEO of Cal-Maine Foods, in a statement. “The Dexter location offers an important opportunity to expand our geographic footprint and enhance our ability to serve our valued customers with added production and distribution capabilities in Missouri and surrounding markets.”
The egg producer said it plans to eventually make additional investments in the facilities and community and create new jobs. Potential expansion areas include egg product processing capabilities, such as hard-cooked eggs, noted the company.
In connection with the acquisition, Cal-Maine Foods expects to enter into agreements with some of Tyson’s contract farmers to convert their operations to support Cal-Maine Foods’ cage-free, free-range, or pasture-raised egg production.
“We look forward to working with the Tyson team to close the transaction and to working with the contract growers who will support our shell egg production capabilities. As we extend our market reach, we remain focused on the efficient and sustainable management of our existing and acquired operations and meeting the demands of our customers,” said Miller.
The terms of the transaction were not disclosed; however, Cal-Maine expects to close the transaction in its third fiscal quarter.
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