SPRINGDALE, AR
Just a month after agreeing to its $7.7 billion purchase of Hillshire Brands, Tyson Foods has annouced the sale of its Mexican and Brazilian poultry operations for $575 million. According to a press release, Pilgrim's Pride will be acquiring Tyson's Mexican business with JBS Foods picking up its operations in Brazil.
"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, President and CEO of Tyson Foods. "In the short term, we'll use the sale proceeds to pay down debt associated with our acquisition of Hillshire Brands. Longer term, we remain committed to our international business and will continue to explore opportunities to extend our international presence."
The Tyson de México purchase brings three vertically integrated plants, more than 5,400 new employees, and seven new distribution centers under the Pilgrims Pride banner.
Similarily, JBS Foods will be acquiring three fully integrated production plants and 5,000 new employees through Tyson de Brasil.
According to a press release, Tyson intends to remain committed to the international market and especially with its growing brand in Asia where it already employs 5,000 people and runs several production plants.
Stay tuned to DeliMarketTV for any updates on Tyson's further business plans.
