Tyson Foods, Inc.
The financial details of the transaction were not revealed. This move is part of Tyson Foods' ongoing strategy to optimize its plant network. Despite the sale, Tyson Foods will continue to meet customer demands through its other production facilities.
House of Raeford Farms plans to maintain operations at the Vienna complex, utilizing the existing workforce and grower network. The sale is contingent on standard closing conditions, including approval from U.S. regulators.
House of Raeford Farms has assured that the current workforce and grower network will remain in place, ensuring continuity in poultry processing.
Tyson Foods' decision to sell the Vienna facility aligns with its broader efforts to streamline operations and enhance efficiency. The company aims to better serve its customers by consolidating production activities in fewer locations, Bloomberg reported.
Last year, the company shut down six plants and cut thousands of jobs due to an industry downturn that significantly impacted earnings.
Although Tyson's profits have improved this year due to higher meat prices and lower feed costs, the chicken unit's margins still lag behind those of U.S. competitor Pilgrim's Pride Corp
Tyson is set to release its fiscal third-quarter results on August 5, which will provide further insight into its financial performance.
Price Action: TSN shares closed lower by 1.38% at $55.91 on Tuesday.
