August 17, 2023
Tyson Foods is reportedly ready to sell its China poultry business and has approached potential buyers, according to a report by Reuters.
The poultry giant has hired investment bank Goldman Sachs to advise on a potential sale and has sent preliminary information to potential buyers, including private-equity firms, say sources mentioned by the news agency.
The process is at an early stage and some private equity firms have expressed initial interest in the business, said sources who asked not to be identified.
Last week, Tyson announced four US plant closures in Arkansas, Indiana, and two in Missouri.
CEO Donnie King said on a follow-up call with analysts last week that the business is “continuing to evaluate everything as we automate and modernise” assets, when asked on the potential of further plant closures. “We’ll continue to look,” he said.
Tyson Foods opened in China in 2001 with headquarters in Shanghai. In June, the company announced its Nantong smart factory started operation in Nantong, East China's Jiangsu province.
The 300-million-yuan ($41.83 million) facility, which is said to have multiple deep processing production lines for pre-fried chicken, fully-cooked chicken, beef patties, and prefabricated dishes, is expected to produce 40,800 metric tons of cooked food per year.
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