Source: Tom Johnston, Meatingplace.com, March 21

George’s Inc. has signed a letter of intent to buy Tyson Foods’ poultry complex in Harrisonburg, Va., officials from both companies announced Friday.   
The companies didn’t disclose the sale price but said in a news release they hope to complete the deal soon.

“We believe Tyson’s Harrisonburg complex will be a good fit for our company, complementing our existing poultry operations in Harrisonburg and nearby Edinburg,” said Gary George, chairman and CEO of George’s.  

George said his company isn’t planning immediate changes and expects to retain most of the 500 workers currently employed there. George’s also intends to honor the contracts Tyson has with the 121 contract growers that supply the plant.

The Harrisonburg complex includes the processing plant in Harrisonburg and a hatchery in Broadway, Va., as well as a feed mill and truck shop in New Market, Va.

“Harrisonburg has been an important part of Tyson for many years and has a great workforce. However, we believe it makes economic sense for us to sell the plant and divert more of our resources to some of our other operations,” said Donnie King, senior group vice president of Poultry and Prepared Foods for Tyson.

Tyson acquired the Harrisonburg complex in 1989, when it purchased Holly Farms. The complex currently produces commodity boneless and whole- bird chicken, as well as chicken leg quarters for sale to retail, foodservice and international customers.

The potential sale does not affect Tyson’s other operations in Virginia, which include poultry production complexes in Glen Allen and Temperanceville.

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