Server: Microsoft-IIS/3.0 Date: Thu, 18 Dec 1997 06:14:51 GMT Content-Type: text/html Accept-Ranges: bytes Last-Modified: Fri, 25 Jul 1997 21:15:23 GMT Content-Length: 4194 Tyson to Sell Beef and Pork Further Processing Operations

Tyson News
Tyson Corporate Site
PeopleProductsAboutTysonNewsEmailIndex

 

www.tyson.com

 

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.

    Contact:
    Ed Nicholson (501) 290-4591
    Corporate Public Relations Manager
    email: nicholsone@tyson.com