Brookshire Grocery to Sell Manufacturing Plants

Brookshire Grocery Co. has agreed to sell its ice cream, dairy and water manufacturing plants, all based in Tyler, Texas, to Hiland Dairy Foods, a Springfield, Mo.-based processor and distributor of dairy foods and other beverages. The deal is anticipated to close next month.

The deal is intended to expand Hiland’s footprint and support economic development in Tyler, where Brookshire is headquartered. Hiland began its expansion into Texas five years ago, when it started supplying dairy products to select markets there.

“Our history and commitment to economic development in the communities we serve is strong. In that spirit, we are committed to growing these facilities in Tyler by investing capital dollars to expand our production capabilities,” said Gary Aggus, CEO of Hiland Dairy.

Added Brad Brookshire, chairman and CEO, Brookshire: “Our main business focus has always been on our retail stores, which our manufacturing plants supported. But with an abundant offering of quality products now available through the supplier community, we were certainly interested when Hiland approached us about buying these plants. This decision made sense on a number of levels, and the assurance from Hiland that they will retain the employees, supply our stores with the same great products, and expand the operations at these plants in Tyler confirmed to us that this would be a good fit.

Brookshire Grocery Co. operates 177 stores in Texas, Louisiana and Arkansas, along with three distribution centers.