020922 Tyson to Sell Specialty Brands Subsidiary

Springdale, AR (AP) - Tyson Foods Inc. said it had agreed to sell its Specialty Brands Inc. subsidiary to Fremont Partners, a San Francisco-based private equity firm.

Terms of the transaction were not disclosed, but Springdale-based Tyson said in its news release that the sale is expected to result in a pre-tax gain of up to $25 million.

According to Tyson, Specialty Brands is a leading producer, processor and marketer of frozen food products, including frozen hand-held Mexican appetizers and entrees, frozen filled pasta, and coated appetizers. Its brands include Jose Ole, Fred's for Starters, Rotanelli, Marquez, Posada, Little Juan and Butcher Boy.

Specialty Brands, based in Ontario, Calif., has manufacturing plants in New York, Missouri, Texas, New Mexico, and California. With approximately 1,650 employees, Specialty Brands had sales of approximately $300 million in fiscal year 2001.

Tyson chairman and CEO John Tyson said the sale was part of an "on-going process of evaluating our businesses in relation to our protein-based business model. Specialty is a great company that didn't fit our business model. The management and team members will do a great job for Fremont."

Tyson Foods Inc. is the world's largest processor and marketer of beef, chicken and pork, with sales in fiscal 2001 of $10.75 billion.

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