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Tyson Foods to Sell Beef & Pork Processing Operations
Springdale, Arkansas (April 24, 1996) - Tyson Foods, Inc. (Nasdaq:TYSNA)
announced today that it intends to sell its beef further processing operations,
known as Gorges/Quik-to-Fix Foods, as well as its pork further processing
plant in Holland, Michigan, and exit the red meat business to focus on doing
what the company does best - chicken. The investment banking firm of CS
First Boston Corporation has been retained as financial advisor to assist
in pursuing the sale of these operations.
"Even though we had become very successful in niche markets with red
meat products, we were not a major player in the sector as a whole, and
could not become one without an enormous commitment of capital," said
Leland Tollett, Tyson's Chairman and CEO. "Instead, we have decided
to leave this business and concentrate our energy and resources on further
growth and development of our chicken and poultry based food products that
form the core of our business. This decision is in no way a negative reflection
on the outstanding people that manage and work in these facilities. We would
expect any buyer to retain most, if not all, of these employees."
The Gorges/Quik-to-Fix Foods operations include four plants located in Harlingen
and Garland, Texas, and Sioux Center and Orange City, Iowa. These plants
employ approximately 1,200 people and last year had combined sales of just
over $300 million. The Holland, Michigan pork plant currently employs about
400 people and last year had sales of approximately $80 million.
Tyson Foods will continue to operate the facilities and service its customer
base until an acceptable buyer is located and a transaction is completed.
It is anticipated that this will be done before the end of this fiscal year
on September 30. No significant changes are expected in operations at the
five locations.
Company-wide, Tyson employs over 63,000 people in 20 states plus Mexico
and Canada. Total sales last year were $5.5 billion.
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