Cal-Maine Foods Inc. has announced an agreement to acquire a broiler processing plant, hatchery and feed mill in Dexter, Missouri, that Tyson Foods recently closed.
The company plans to repurpose the assets for use in egg and egg products production, with the transaction expected to close in its third fiscal quarter.
Cal-Maine Foods said it will initially convert the broiler processing plant to an egg grading site and anticipates making additional investments in the facilities and community, creating new jobs.
Potential future expansion includes egg products processing capabilities, such as hard-cooked eggs. In connection with the acquisition, the company expects to enter into agreements with some of Tyson’s former contract farmers to convert their operations to support Cal-Maine Foods’ cage-free, free-range or pasture-raised egg production operations.
“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.
“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.”
About Cal-Maine Foods
Cal-Maine Foods Inc. is engaged in the production, grading, packaging, marketing and distribution of fresh shell eggs, including conventional, cage-free, organic, brown, free-range, pasture-raised and nutritionally enhanced eggs.
The company, which is headquartered in Ridgeland, Mississippi, is the largest producer and distributor of fresh shell eggs in the U.S. and sells the majority of them in states across the Southeast, Southwest, Midwest and mid-Atlantic.
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