SPRINGDALE, ARK. — Local Grain Services, a subsidiary of Tyson Foods Inc., has signed a definitive agreement to acquire three commercial grain elevators in Tennessee from the Grain Group of The Andersons, Inc.
The grain elevators in Dyer, Humboldt and Kenton, Tenn., will support the company’s existing facility in Union City, Tenn., as well as the chicken complex the company is building in Humboldt, the company said. The transaction is expected to close in March.
|Doug Ramsey, group president of poultry for Tyson Foods|
“This project will help secure vital inputs for us and position us to grow and support our customers,” said Doug Ramsey, group president of poultry for Tyson Foods. “We look forward to creating more direct relationships with the grain producers in the area.”
Twenty employees from The Andersons will become Tyson employees after the agreement is finalized. No disruption to existing contracts with area farmers is expected.
Tyson Foods’ Local Grain Services (LGS) was created to provide resources for the farmers who provide grain to feed chickens grown for the company. LGS buys corn, wheat and soybeans directly from local farmers, which in turn promotes local economies and is part of the company’s strategy to sustainably feed the world.