RIDGLAND, MISS. — Egg producer Cal-Maine Foods Inc. announced a definitive agreement reached with Tyson Foods Inc. to acquire its former broiler processing plant, hatchery and feed mill in Dexter, Mo. The transaction is expected to close in the third fiscal quarter.
Cal-Maine plans to repurpose the assets for egg production, initially converting the processing plant to an egg grading facility.
The company added that future investments in the facilities and community are anticipated following the completion of the transaction. Potential future expansion includes egg products processing capabilities, such as hard-cooked eggs.
In connection with the acquisition, Cal-Maine expects to enter into agreements with some of Tyson’s former contract farmers to convert their operations to support Cal-Maine’s 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 chief executive officer of Cal-Maine. “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.”
Tyson originally announced the closure of the Dexter plant during a third quarter earnings call for the fiscal year 2023. At the same time, Tyson announced poultry processing facilities in Little Rock, Ark., Corydon, Ind., and Noel, Mo., would close as well.
Donnie King, president and CEO of Tyson, said in a statement at the time that the difficult decision demonstrates the company’s commitment to bold action and operational excellence as it drives performance, lowers costs and improves capacity utilization.