Michael Foods to Expand in Gaylord

The company has entered into an agreement with the city to purchase a 31,460-square-foot building and two vacant lots in an industrial complex where it currently owns three other buildings.

Minnetonka-based Michael Foods, Inc., has entered into an agreement to purchase a 31,460-square-foot building and two vacant lots from the city of Gaylord, thereby expanding its operations in the city.

According to Chuck Klimmek, president of Gaylord's Economic Development Authority, the company entered into an agreement with the city to purchase the building and two lots in December. With roughly 300 employees in Gaylord-located about 60 miles southwest of the Twin Cities-Michael Foods is the city's largest employer, Klimmek said.

Tuesday morning telephone calls to Michael Foods representatives to get details about the company's plans for the building and two lots were not immediately returned.

Klimmek said that the building's former tenant, Entegris, Inc., told the city about two years ago that it planned to move, and it completed its move at the end of December. The city had been seeking a buyer for the building ever since and has been in talks with Michael Foods for about a year.

According to U.S. Securities and Exchange Commission (SEC) filings, Michael Foods currently owns three buildings in Gaylord's industrial park-a 230,000-square-foot processing and distribution plant, a 349,000-square-foot egg production facility, and a 130,000-square-foot poultry house.

Klimmek said that he is not aware of the plans the company has for the newly purchased assets but anticipates that new jobs will be added.

The deal will close in the next couple of months, according to Klimmek.

Michael Foods is a multi-national producer and distributor of food products to the foodservice, retail, and food-ingredient markets. It is among Minnesota's 15-largest privately held companies based on revenue, which totaled $1.54 billion for the fiscal year that ended in January 2010. It employs more than 3,700.