Dive Brief:
- Tyson is selling its poultry operations in both Mexico and Brazil to JBS, as it seeks to raise cash to pay down debt associated with its takeover of Hillshire Brands.
- The Mexican operations will be run by JBS's Pilgrim's Pride unit. Brazilian operations will be merged into JBS Foods.
- News of the sale came as Tyson reported an 11% rise in sales and a 9% gain in profit for the most recent quarter. Tyson also recently announced that it will shut down three meat-processing factories and lay off 950 workers.
Dive Insight:
It's rare when a takeover battle like the one that raged around Hillshire Brands ends in a win-win situation for all concerned. But this looks like one.
Until today, one loser in the Hillshire fight was clearly Pilgrim's Pride. Now that spurned suitor appears to be walking away with a new Mexican love. Now if only someone would buy Pinnacle Foods, which so graciously backed away from its position in this battle, and give us a fairy-tale ending to the whole thing.