Global Egg Corp. has entered into an agreement to purchase Cargill’s Etobicoke egg processing facility. Terms of the sale are not being disclosed.
The majority of the facility’s 53 employees will be offered positions with Global Egg. Displaced employees will receive severance and other support from Cargill. The transaction is expected to close this fall. Cargill has owned the facility since 2006.
“Given a recent shift in demand for cooked egg products like those produced at Etobicoke, which resulted from changing customer requirements, we feel the facility is a better fit with a firm such as Global Egg Corporation,” said Chris Roberts, president of Cargill’s North America egg business. “We know Global Egg well, and the Etobicoke plant complements their existing egg processing footprint. We will work closely with them to ensure a seamless transition that meets all customers’ needs.”
Cargill’s U.S. egg processing facilities will not affected by the sale. The company’s U.S. egg business remains an integral part of Cargill’s protein growth strategy. Over the past year, the Cargill protein group’s customer-first focus has led to $500 million of investments to grow this Wichita, Kan.-based business. Those investments include construction of a $50 million beef distribution center in Dodge City, Kan.; $111 million for conversion of a facility in Nebraska to better serve cooked meats customers; $27 million to expand egg processing capabilities in Michigan, and the purchase of a beef processing facility in South Carolina and a custom cooked meats business with operations in Ft. Worth, Texas, and Nashville, Tenn.
“Global protein demand continues to increase in concert with population growth and the movement of more people into the middle class around the world,” Roberts explained. “As household income improves, people typically consume more complex proteins in the form of meat, dairy, egg and fish products. We believe we are in the sweet spot to provide more people with nutritious, wholesome, sustainable, abundant and affordable protein now and in the future.”