Cal-Maine Foods announced plans to acquire a Tyson Foods broiler processing plant, as well as a hatchery and feed mill, located in Dexter, Missouri.
The egg producer plans to convert the broiler processing facility into an egg and egg products plant but will initially convert the building to an egg grading facility. Cal-Maine said it expects to close the transaction in the third fiscal quarter of 2024.
Additionally, after the acquisition is completed, the egg producer 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.
According to news outlet Reuters, Tyson originally announced the closure of the Dexter plant during its third quarter earnings call for the fiscal year 2023. At the same time, Tyson announced it would be closing three additional poultry processing facilities in other states.
Sherman Miller, Cal-Maine Foods President and Chief Executive Officer, 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.”
