Tyson Foods, Inc. has recently reached an agreement to sell a poultry processing complex to House of Raeford Farms in a strategic move to optimize its plant network, as announced by the Arkansas-based company on Tuesday.
The poultry complex located in Vienna, Georgia, plays a crucial role in processing chicken for regional retail customers and provides employment to hundreds of workers. If the sale is finalized, House of Raeford Farms intends to maintain operations utilizing the existing workforce and grower network.
The financial terms of the deal were not disclosed, and Tyson Foods has not yet responded to inquiries for further comments.
“Tyson Foods’ decision to divest the complex is part of its ongoing efforts to optimize its plant network, and the company will continue fulfilling customer orders from its other production facilities,” stated the company in a press release.
This agreement comes after a series of cost-cutting measures. Recently, Tyson closed its Perry, Iowa, pork processing plant in late June, resulting in the displacement of approximately 1,200 employees.
In the past year, Tyson has also shuttered eight processing plants, including six chicken and two fresh meats facilities.
On the other hand, House of Raeford Farms, headquartered in North Carolina, has been exploring opportunities to expand its production capabilities. Earlier this year, the company was reportedly considering Aiken County, South Carolina, for a potential facility, as Watt Ag reported, although official statements were not made at that time.
In 2015, Tyson made a substantial investment of over $110 million into the Vienna, Georgia, complex to transition its production focus from food service to retail. This expansion involved the addition of 100,000 square feet of space and the creation of 500 new jobs in the region.
The company initially acquired the production assets from Cargill in 1995, as outlined in an investor fact book.