Tyson Foods, Inc. (NYSE:TSN) shares are trading higher. The company late Friday announced a definitive agreement where Cal-Maine Foods, Inc. (NASDAQ:CALM) would acquire its recently closed facilities.
What To Know: Under the agreement, which was announced last Friday after the close of the market, Cal-Maine Foods will acquire a broiler processing plant, hatchery and feed mill in Dexter, Missouri which the company intends to repurpose for use in egg and egg products production. Cal-Maine Foods also plans to make further investments in the facilities and community.
The company expects that the transaction will close in its third-quarter.
Sherman Miller, President and CEO of Cal-Maine Foods, Inc., said, “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.”
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TSN, CALM Price Action: Shares of Tyson Foods were up 3.68% at $55.73 while shares of Cal-Maine Foods were down 2.96% at $55.69 at the time of publication, according to Benzinga Pro.
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