Tyson Foods agrees to sell its poultry operations in Mexico and Brazil

Jul 29, 2014

By Jean-Paul McDonald, Farms.com

Tyson Foods Inc. recently announced that it has reached a deal with JBS SA to tell off its poultry division in Mexico and Brazil.

The purchase is worth $575 million and is expected to be paid in cash. The sale is subject to regulatory approval, but company officials anticipate that the transition will be finalized at the end of 2014. The new owners, JBS and Pilgrim’s Pride say that current operations and the existing workforce will be maintained in both countries.

According to a release, Tyson Foods’ Mexican arm will be acquired through Pilgrim’s Pride, who are majority owners of JBS USA, and sole owned subsidiary of JBS SA. The Brazilian business is to be taken over by JBS Foods, a wholly owned subsidiary of JBS SA.

The Mexican portion of the business, also known as Tyson de México, which is located in north central Mexico, has three poultry plants. The Mexican plants employ more than 5,400 people and have seven distribution centres.

The Brazil operations, known as Tyson do Brasil, have three production plants – two in Santa Catarina and one in the state of Parana. The plants in Brazil employ about 5,000 people.

Tyson Foods says that it will continue to serve its Mexican customers. The company plans to ship U.S. produced chicken as well as chicken produced in Mexico. As part of the deal, Tyson entered into a co-packaging arrangement with Pilgrim`s Pride. 

In the release, Tyson said that its focus will be on growing their presence in Asia, which includes three poultry plants in China and plants in India.