Tyson Foods acquires organic chicken producer; sells Sara Lee Frozen Bakery
Tyson Foods has acquired Tecumseh Poultry, making it one of the United States’ leading producers of organic branded chicken. In other news, Tyson has entered into an agreement to sell its Sara Lee Frozen Bakery and Van’s businesses to private equity firm Kohlberg & Co.
Tyson Foods has acquired Tecumseh Poultry, making it one of the United States’ leading producers of organic branded chicken. The purchase includes the air-chilled Smart Chicken brand. Terms of the deal were not 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 U.S. Dept. of Agriculture (USDA) inspectors and are considered safe. 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, Neb., 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.
In other news, Tyson has entered into an agreement to sell its Sara Lee Frozen Bakery and Van’s businesses to private equity firm Kohlberg & Co. The sale includes the Chef Pierre, Bistro Collection, and Van’s brands, and a license to use the Sara Lee brand in certain channels. The deal also includes the sale of the company’s Tarboro, N.C. and Traverse City, Mich. prepared foods facilities and a sales office in Canada. The 1,160 team members employed at the two facilities and sales office are expected to keep their positions with the new company.
“These are great assets with outstanding team members; however, we’re focused on expanding Tyson Foods’ leadership position in protein,” said Sally Grimes, group president of prepared foods. “We believe these brands and facilities will do well as part of Kohlberg, which has extensive experience buying and growing businesses.”
Kohlberg is partnering with C.J. Fraleigh, who will join as executive chairman at closing. Fraleigh, a long-time consumer products executive with more than 30 years of experience, previously served as CEO of Sara Lee–North America.