Tyson Foods officials currently expect the sale, which is subject to regulatory approval, to be completed by the end of 2014.
JBS and Pilgrim’s Pride expect to maintain all the operations working to capacity with the existing workforce, and to maintain all labour 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, 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.”
Tyson Foods’ Mexican business will be acquired through Pilgrim’s Pride, whose majority owner is JBS US Holdings, a wholly owned subsidiary of JBS. The Brazilian business is to be acquired through JBS Foods, also a wholly owned subsidiary of JBS SA.
The Mexican business, known as Tyson de México, is a vertically integrated poultry business based in Gomez Palacio in North Central México. It has three plants and employs more than 5,400 team members in its plants, offices and seven distribution centres.
The acquisition of Tyson’s Brazil operations, known as Tyson do Brasil, involves three fully integrated production plants, two in Santa Catarina and one in the state of Parana. Tyson do Brasil employs 5,000 team members.
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