Monday, 4 June 2018
Purchase of Tecumseh Poultry LLC includes air-chilled Smart Chicken® brandSPRINGDALE, Ark. and WAVERLY, Neb., June 04, 2018 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. (NYSE:TSN) has become one of the nation’s leading producers of organic branded chicken through its acquisition of Tecumseh Poultry LLC. The purchase, announced today, includes the air-chilled Smart Chicken® brand. Terms of the deal are not being 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 USDA inspectors and are considered safe.
“Consumers want choices. More and more consumers want options for fresh, organic food that fits their lifestyles,” said Eric Schwartz, chief marketing officer of Poultry for Tyson Foods. “The Smart Chicken brand is a leader in this key organic category, and the category’s growth makes this acquisition a strategic fit for Tyson Foods.”
According to Nielsen’s Perishables data, organic fresh chicken grew sales volume by 8.6 percent from 2016 to 2017, more than four times the rate of conventional poultry. 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, Nebraska, 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.
“We’ve spent 18 years working to perfect our ability to produce the highest-quality, fresh chicken in the U.S. We’re very proud of that, and it’s not going to change,” said Kevin Siebert, president of Tecumseh. “Tyson Foods brings to the Smart Chicken brand and the rest of our product lines the resources to make us even stronger.”
“This is a well-run company with a solid customer base that’s earned consumer loyalty. We’re excited for Tecumseh to continue to produce quality chicken while providing the business the scale and resources it needs to continue growing,” said Doug Ramsey, group president of Poultry for Tyson Foods. “Customers should continue to work with existing contacts.”
Tyson Foods also produces organic products under its NatureRaised Farms® and Aidells® brands.
D.A. Davidson & Co. served as exclusive financial advisor to Tecumseh Poultry in the transaction.
*About Tyson Foods*
Tyson Foods Inc. (NYSE:TSN) is one of the world’s largest food companies and a recognized leader in protein. Founded in 1935 by John W. Tyson and grown under three generations of family leadership, the company has a broad portfolio of products and brands like Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State Fair®. Tyson Foods innovates continually to make protein more sustainable, tailor food for everywhere it’s available and raise the world’s expectations for how much good food can do. Headquartered in Springdale, Arkansas, the company has 122,000 team members. Through its Core Values, Tyson Foods strives to operate with integrity, create value for its shareholders, customers, communities and team members and serve as a steward of the animals, land and environment entrusted to it. Visit www.tysonfoods.com
*CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS*
This communication contains forward-looking statements, including statements regarding the expected benefits of the acquisition of Tecumseh Poultry, LLC (“Tecumseh”), which involve a number of risks and uncertainties, including risks related to maintaining Tecumseh’s existing customer relationships, the ultimate outcome and results of integrating Tecumseh’s assets and business operations; the ultimate outcome of our strategy applied to this transaction, including our future financial condition, operating results, strategy and estimates; and other risks and uncertainties, including those identified in our Annual Report on Form 10-K for the year ended September 30, 2017, and any subsequent quarterly reports on Form 10-Q. The words “will,” “anticipate,” “expect,” and other similar expressions (or the negative of such terms) are intended to identify forward-looking statements. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results and the timing of events may differ materially from the results and/or timing discussed in the forward-looking statements, and readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date of this communication, and we do not undertake any obligation to update any forward-looking statement except as required by law.
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