Cal-Maine Foods, Inc. announced a definitive agreement to acquire a broiler processing plant, hatchery and feed mill in Dexter, Mo., that were recently closed by Tyson Foods, Inc. 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 says it 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 members 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.