Publicly traded Cal-Maine Foods Inc. of Ridgeland, Mississippi, announced it has a deal to acquire a broiler processing plant, hatchery and feed mill in Dexter, Missouri, that were recently closed by Tyson Foods Inc. of Springdale.
Cal-Maine plans to repurpose the assets for use in egg and egg products production, the company said in a news release. The transaction is expected to close in the company’s third fiscal quarter.
Financial terms of the deal were not disclosed.
The chicken processing plant is one of six that Tyson closed in 2023 under a plan to consolidate its struggling poultry segment. Missouri officials had reportedly been pressuring Tyson to sell the plant, which employed about 600 people.
Cal-Maine said it will initially convert the broiler processing plant to an egg grading facility. Additional investments in the facility and new jobs are anticipated. The company said it could expand the plant to add processing capabilities for egg products, such as hard-cooked eggs.
Cal-Maine, the largest producer and distributor of fresh shell eggs in the U.S., also expects to enter into agreements with some of the poultry farmers whose contracts were ended or not renewed by Tyson. Cal-Maine plans to help the farmers convert their operations to support the company’s cage free, free range, or pasture raised egg production operations.
The company didn’t say how many integrator contracts it would pick up. About 39 farmers in Carroll County lost their deals with Tyson, in addition to 20 in southern Missouri.
“This transaction is consistent with our growth strategy to expand our business through selective acquisitions in addition to our organic growth initiatives,” Sherman Miller, president and CEO of Cal-Maine, said in a statement. “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.”