Latest headlines

Tyson to sell Mexican and Brazilian poultry businesses

July 28, 2014
/ Print / Reprints /
ShareMore
/ Text Size+

Tyson to sell Mexican and Brazilian poultry businessesTyson Foods, Inc. announced Monday it has reached an agreement with JBS SA to sell its poultry businesses in Mexico and Brazil.

The transaction, valued at $575 million, is expected to be complete by the end of 2014. Tyson said JBS and Pilgrim’s Pride intend to maintain all operations with the current workforce and will honor labor contracts in both countries.

“Although these are good businesses with great team members, we haven’t had the necessary scale to gain leading share positions in these markets,” said Donnie Smith, company president and CEO.

Smith said Tyson will use proceeds of the sale to pay down debt associated with the company’s acquisition of Hillshire Brands.

Tyson won a back-and-forth bidding war with Pilgrim’s Pride in June for the acquisition of Hillshire Brands.

Tyson Foods’ Mexican business will be acquired through Pilgrim’s Pride, whose majority owner is JBS USA Holdings, Inc., a wholly owned subsidiary of JBS SA. The Brazilian business is to be acquired through JBS Foods, also a wholly owned subsidiary of JBS SA.

Tyson said it will continue to supply Mexican customers with US-produced chicken as well as chicken produced in Mexico, in part through a co-packaging arrangement with Pilgrim’s Pride.

In the long term, Smith said the company remains committed to its international business and will continue to look for opportunities to expand. Furthermore, the company says it is focused on growing poultry opportunities in Asia.

According to Tyson, its Mexican poultry business is based in North Central México, has three plants and employs more than 5,400 people. The acquisition of Tyson’s Brazil operations, known as Tyson do Brazil, involves three production plants with 5,000 employees.

Did you enjoy this article? Click here to subscribe to Food Engineering Magazine.

Recent Articles by Jeremy Gerrard

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Plant of the Year 2014

Blue Diamond Growers was chosen as Food Engineering's 2014 Plant of the Year. The Sacramento-based company is the world’s largest producer of almonds and almond ingredients.

Podcasts

Burns & McDonnell project manager RJ Hope and senior project engineer Justin Hamilton discuss the distinctions between Food Safety and Food Defense as well as the implications for food manufacturers of the Food Safety Modernization Act.
More Podcasts

FSMA Audit

What is the is most important step you have taken to become ready for a FSMA audit?
View Results Poll Archive

Food Engineering

FE September 2014

2014 September

The September 2014 issue of Food Engineering explores how lean manufacturing, quality improvements and increased automation helps processors meet rapidly changing demands. Also, read how robotics, advanced machine controls, software and OEE are just a few of the tools that can boost productivity on packaging lines.

Table Of Contents Subscribe

THE FOOD ENGINEERING STORE

Food-Authentication-Flyer-(.gif
Food Authentication Using Bioorganic Molecules

This text provides critical tools and data needed to augment routine food analysis and enhance food safety by aiding in the detection of counterfeit, and potentially deleterious, foods.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Food Master

Food Master Cover 2014Food Master 2014 is now available!

Where the buying process begins in the food and beverage manufacturing market. 

Visit www.foodmaster.com to learn more.

STAY CONNECTED

FE recent tweets

facebook_40.pngtwitter_40px.pngyoutube_40px.png linkedin_40px.pngGoogle +