In a deal that will close as early as the end of March, The Andersons has agreed to sell three of its grain elevators to Tyson Foods Inc. The three elevators are located in Tennessee: Humboldt, Kenton and Dyer.
The Andersons owns three additional elevators in Tennessee that are not a part of the purchase agreement with Tyson, but the Company is exploring options for the three remaining facilities.
“Our fourth quarter performance was solid considering that we continue to face some challenging market conditions in several of our businesses, and we incurred some impairment expenses,” says President and CEO Pat Bowe. “Notwithstanding expenses associated with our decision to sell the three Tennessee elevators, the Grain Group recorded better year-over-year results highlighted by significant improvement by Lansing Trade Group. For the full year, our adjusted Grain earnings improved by almost $40 million.”
The Andersons built the 2.9-million-bu elevator in Humbodlt, which began operations in July 2016. It was the first elevator the company constructed in Tennessee.
The Andersons Dyer facility totals 2.5 million bu of storage space and has access to the KCS, WTNN, NS, CSXT, & CN rail lines.
The Kenton facility has 2.2 million bu storage space and has access to the KCS, WTNN, NS, CSXT, & CN rail lines.