Egg producer Cal-Maine Foods has agreed to acquire a recently shut chicken broiler processing plant, hatchery and feed mill in Dexter, Missouri from Tyson Foods.
Tyson, the largest U.S. meat producer by sales, said in August it would be shutting down four of its chicken plants in states including Missouri, as it looks to cut costs amid slowing demand for its products.
About 683 people worked at Tyson's facility in Dexter, which has a population of around 8,000.
Cal-Maine said it expects to convert the broiler processing factory into an egg-grading facility initially and anticipates making additional investments and creating new jobs.
The company, which expects to close the transaction in its third fiscal quarter, did not disclose a value for the deal.
Cal-Maine also said it expects to enter into agreements with some of Tyson’s former contract farmers and convert their operations to support its egg production.
Growth Strategy
“We are pleased to announce the proposed acquisition of the assets of Tyson’s former broiler processing facility in Dexter, Missouri," commented Sherman Miller, president and chief executive officer of Cal-Maine Foods, Inc., "This transaction is consistent with our growth strategy to expand our business through selective acquisitions in addition to our organic growth initiatives.
"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. 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.”
Additional reporting by ESM
