Cal-Maine Foods, Inc., the largest producer and distributor of fresh shell eggs in the United States, announced a definitive agreement to acquire a broiler processing plant, hatchery and feed mill in Dexter, Missouri, that were recently closed by Tyson Foods, Inc. (NYSE: TSN) (“Tyson”). The Company plans to repurpose the assets for use in egg and egg products production. Cal-Maine Foods expects to close the transaction in its third fiscal quarter.
Cal-Maine Foods will initially convert the broiler processing plant to an egg grading facility. The Company is excited about the growth prospects from this new operation, and, subject to the completion of the transaction, anticipates making additional investments in the facilities and community and creating new jobs. Potential future expansion includes egg products processing capabilities, such as hard-cooked eggs. In connection with the acquisition, Cal-Maine Foods expects to enter into agreements with certain 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.
Commenting on the announcement, Sherman Miller, president and chief executive officer of Cal-Maine Foods, Inc., stated, “We are pleased to announce the proposed acquisition of the assets of Tyson’s former broiler processing facility in Dexter, Missouri. 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.”
