990566 Tyson to Sell Seafood Division

Springdale, AR - Tyson Foods, Inc. announced it has signed definitive agreements to sell its seafood division, Tyson Seafood Group, in two separate transactions scheduled to close simultaneously. The analog business, which includes the manufacture, sales, distribution and marketing of surimi based products under trade names Louis Kemp, Captain Jac, SeaFest and Pacific Mate, is being sold to Bumble Bee Seafoods, Inc., a wholly owned subsidiary of International Home Foods, Inc. of Parsippany, New Jersey. The remaining seafood assets, which include vessels, associated fishing rights and shoreside processing plants, are being sold to TT Acquisition, Inc., a wholly owned subsidiary of Trident Seafoods Corporation of Seattle, Washington.

While financial terms of the transactions were not disclosed, Tyson did announce that Seafood Group sales for fiscal 1998 were approximately $214 million and that net proceeds to be received from the transactions will be used to reduce indebtedness.

Tyson has previously announced a strategy of focusing on its core business -- producing and marketing chicken and poultry based food products -- while reviewing the possibility of divesting other non-core assets.

Wayne Britt, CEO of Tyson Foods, Inc. said “The announcement of these transactions demonstrates our continuing resolve to focus on our strategic strengths. I am very appreciative of the commitment and effort of our Seafood Group employees.” John Tyson, Chairman of Tyson Foods, Inc. added “I am pleased our Seafood Group team members will be associated with two fine companies within the seafood industry while we dedicate our efforts and resources to the chicken business.”

The transactions are subject to typical closing conditions, including the receipt of applicable regulatory approvals, and each transaction is contingent upon the other closing.

This Article Compliments of...