Food Business News - June 12, 2018 - 9
Tyson Foods acquires organic
Pilgrim's Pride Corp.
manufactures and markets
organic chicken under its
Just Bare brand.
TECUMSEH POULTRY L.L.C.
Tecumseh Poultry produces the air-chilled
Smart Chicken brand
SPRINGDALE, ARK. - Tyson Foods, Inc. is boosting its presence in the organic chicken
market with the acquisition of Tecumseh
Poultry L.L.C. Financial terms of the
transaction, which includes the air-chilled
Smart Chicken brand, were not disclosed.
Founded in 1998, Tecumseh produces fresh chicken, as well as deli-style
chicken and chicken sausages. The
air-chilling process involves using cold
air to cool chicken during processing.
Most companies in the U.S. chicken
industry use a water-chilling process.
"Consumers want choices," said Eric
Schwartz, chief marketing officer of poultry at Tyson Foods. "More and more consumers want options for fresh, organic food
that fits their lifestyles. The Smart Chicken
brand is a leader in this key organic category, and the category's growth makes this
acquisition a strategic fit for Tyson Foods."
Tyson currently produces organic
products under its NatureRaised Farms
and Aidells brands.
Demand for organic fresh chicken has been on the rise, according
to Tyson. Citing data from Nielsen's
Perishables, the company said organic
fresh chicken sales volume increased
8.6% between 2016 and 2017, which was
more than four times the growth rate of
Tyson's acquisition of Tecumseh
Poultry includes two plants, located in
Tecumseh and Waverly, Neb., as well as
live production operations. Tyson said it
plans to operate Tecumseh Poultry as a
separate, wholly owned subsidiary and
expects to retain its approximately 600
employees, including operations staff,
sales teams and management.
"We've spent 18 years working to
perfect our ability to produce the highest-quality, fresh chicken in the U.S.,"
said Kevin Siebert, president of Tecumseh Poultry. "We're very proud of that,
and it's not going to change. Tyson Foods
brings to the Smart Chicken brand and
the rest of our product lines the resources to make us even stronger."
Doug Ramsey, group president of
poultry for Tyson Foods, added, "This is a
Tyson Foods to sell Sara Lee Frozen Bakery,
Van's businesses to private equity investor
ohlberg & Co., L.L.C., a Mount Kisco, N.Y.-based private equity
firm, is partnering with C.J. Fraleigh to acquire the Sara Lee
Frozen Bakery and Van's businesses from Tyson Foods, Inc.
Financial terms of the transaction were not disclosed.
Under terms of the deal, Kohlberg & Co. would acquire the Chef
Pierre, Bistro Collection and Van's brands, as well as a license to use
the Sara Lee brand in certain channels. The deal also includes prepared foods facilities in Tarboro, N.C., and Traverse City, Mich., and a
sales office in Canada.
"These are great assets with outstanding team members; however,
we're focused on expanding Tyson Foods' leadership position in
protein," said Sally Grimes, group president of Prepared Foods for Tyson.
"We believe these brands and facilities will do well as part of Kohlberg,
which has extensive experience buying and growing businesses."
Tyson Foods acquired The Hillshire Brands Co. (which had been
split off from Sara Lee in 2012) in the summer of 2014, just a few
months after Hillshire and Catterton Partners bought Van's Natural
Foods for $165 million.
Mr. Fraleigh will join Kohlberg & Co. as executive chairman
June 12, 2018
once the transaction closes. He is a
who at one time
was chief executive
officer of Sara Lee
TYSON FODOS, INC.
excited to be joining the team," Mr. Fraleigh said. "With established
and iconic brands, including Sara Lee, Chef Pierre, Bistro Collection
and Van's, this business is well-positioned to continue its historical
growth trajectory. I look forward to working with the company's
employees to execute on growth opportunities we've identified and
continue providing customers with excellent service, innovation and
consistently high-quality products."
Since its inception in 1987, Kohlberg & Co. said it has organized
eight private equity funds and raised $7.5 billion of committed
equity capital. FBN
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