Tyson Foods To Sell Poultry Businesses In Mexico And Brazil In $575 Mln Deal

(RTTNews) - Tyson Foods, Inc. (TSN) has agreed to sell its Mexico and Brazilian poultry businesses to repay debt connected with the Hillshire Brands acquisition, the company said, ahead of its third-quarter earnings statement Monday.

"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, CEO of Tyson Foods.

The transaction is valued at $575 million and will be paid for in cash, Tyson Foods said.

The Mexican business, based in Gomez Palacio, has three plants and employs more than 5,400 people, while the Brazil operations, with 5,000 workers, have two production plants in Santa Catarina and one in Parana.

Tyson Foods is selling the Mexican business to Pilgrim's Pride, in which JBS USA Holdings, Inc., a unit of JBS SA, has a majority stake. The Brazilian business will be acquired JBS Foods, another unit of JBS SA.

Tyson Foods will focus on growing its Asian poultry business, which has three plants in China as well as majority ownership of two plants in India.

The company expects the sale to be completed by the end of 2014.