Cargill has agreed to offload its 10-year-old Canadian egg processing facility in Etobicoke to the Global Egg.
However, the transaction details were revealed by the two companies.
Following the acquisition, the facility’s 53 employees will be absorbed into Global Egg.
Cargill’s North America egg business president Chris Roberts said: “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.
“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.”
The deal is expected to be closed this fall and the sale is not going to affect any of Cargill’s egg processing facilities.
According to Cargill, its egg business in the US will continue to be an integral part of its protein growth strategy.
Cargill has made a series of investments to boost its meat and egg production capacities in various US states.
In Philippines, Cargill in collaboration with Jollibee Foods Corporation broke ground on a new poultry plant in Batangas province. The new facility, expected to create an additional 1000 new jobs, will process 45 million chickens per year once it starts operating in the last quarter of 2017.
