U.S.-based Tyson Foods which just purchased Hillshire Brands for US$8.55 billion, has agreed to sell its Brazilian and Mexican poultry operations to JBS for US$575 million. Tyson Foods’ chief executive Donnie Smith states that the Brazilian and Mexican arms of the business have not matched Tyson’s strength in its domestic market and haven’t gained the scale needed to control leading market positions in their markets. Tyson’s Indian and Chinese operations will now make up the company’s international poultry business, however the company will consider expanding its overseas operations in the future. For JBS, the world’s biggest meatpacker which historically focused on beef, the purchase represents another step toward integrating into the poultry sector. Two weeks ago JBS paid US$111 million for the poultry assets of Ceu Azul Alimentos. JBS expects the Brazilian unit which it paid $175 million for to boost its sales by $350 million. The Mexican unit, which it paid $400 million for is expected to lift its revenues by $650 million.
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