Tyson Foods Acquires One of the Leading Brands of Organic Chicken
June 04 2018 - 4:20PM
Purchase of Tecumseh Poultry LLC includes
air-chilled Smart Chicken® brand
Tyson Foods, Inc. (NYSE:TSN) has become one of the nation’s leading
producers of organic branded chicken through its acquisition of
Tecumseh Poultry LLC. The purchase, announced today, includes
the air-chilled Smart Chicken® brand. Terms of the deal are not
being disclosed.
Tecumseh Poultry was founded in 1998 and produces air-chilled,
fresh chicken, as well as deli-style chicken and a variety of
chicken sausages. The air-chilling process involves using cold air
to cool chicken during processing, while the most common method
used by the U.S. chicken industry is water-chilling. Both
methods are monitored by USDA inspectors and are considered
safe.
“Consumers want choices. More and more consumers want options
for fresh, organic food that fits their lifestyles,” said Eric
Schwartz, chief marketing officer of Poultry for Tyson Foods. “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.”
According to Nielsen’s Perishables data, organic fresh chicken
grew sales volume by 8.6 percent from 2016 to 2017, more than four
times the rate of conventional poultry. Tecumseh Poultry’s
processing capabilities and its focus on quality have given the
Smart Chicken brand a leading position in the fastest-growing U.S.
category of fresh chicken.
The company’s operations include two plants located in Tecumseh
and Waverly, Nebraska, as well as live operations. Tyson Foods
currently plans to operate Tecumseh Poultry as a separate, wholly
owned subsidiary and expects to retain its approximately 600 team
members, 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. We’re very proud of
that, and it’s not going to change,” said Kevin Siebert, president
of Tecumseh. “Tyson Foods brings to the Smart Chicken brand and the
rest of our product lines the resources to make us even stronger.”
“This is a well-run company with a solid customer base that’s
earned consumer loyalty. We’re excited for Tecumseh to continue to
produce quality chicken while providing the business the scale and
resources it needs to continue growing,” said Doug Ramsey, group
president of Poultry for Tyson Foods. “Customers should continue to
work with existing contacts.”
Tyson Foods also produces organic products under its
NatureRaised Farms® and Aidells® brands.
D.A. Davidson & Co. served as exclusive financial advisor to
Tecumseh Poultry in the transaction.
About Tyson Foods Tyson Foods Inc. (NYSE:TSN)
is one of the world’s largest food companies and a recognized
leader in protein. Founded in 1935 by John W. Tyson and grown under
three generations of family leadership, the company has a broad
portfolio of products and brands like Tyson®, Jimmy Dean®,
Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State
Fair®. Tyson Foods innovates continually to make protein more
sustainable, tailor food for everywhere it’s available and raise
the world’s expectations for how much good food can do.
Headquartered in Springdale, Arkansas, the company has 122,000 team
members. Through its Core Values, Tyson Foods strives to operate
with integrity, create value for its shareholders, customers,
communities and team members and serve as a steward of the animals,
land and environment entrusted to it. Visit www.tysonfoods.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTSThis communication contains forward-looking
statements, including statements regarding the expected benefits of
the acquisition of Tecumseh Poultry, LLC (“Tecumseh”), which
involve a number of risks and uncertainties, including risks
related to maintaining Tecumseh’s existing customer relationships,
the ultimate outcome and results of integrating Tecumseh’s assets
and business operations; the ultimate outcome of our strategy
applied to this transaction, including our future financial
condition, operating results, strategy and estimates; and other
risks and uncertainties, including those identified in our Annual
Report on Form 10-K for the year ended September 30, 2017, and any
subsequent quarterly reports on Form 10-Q. The words “will,”
“anticipate,” “expect,” and other similar expressions (or the
negative of such terms) are intended to identify forward-looking
statements. If underlying assumptions prove inaccurate or
unknown risks or uncertainties materialize, actual results and the
timing of events may differ materially from the results and/or
timing discussed in the forward-looking statements, and readers are
cautioned not to place undue reliance on these forward-looking
statements. Forward-looking statements speak only as of the
date of this communication, and we do not undertake any obligation
to update any forward-looking statement except as required by law.
Media Contact: Worth Sparkman, 479-290-6358,
worth.sparkman@tyson.com Investor Contact: Jon
Kathol, 479-290-4235, jon.kathol@tyson.com
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