Server: Microsoft-IIS/3.0 Date: Thu, 18 Dec 1997 06:16:20 GMT Content-Type: text/html Accept-Ranges: bytes Last-Modified: Fri, 25 Jul 1997 21:15:17 GMT Content-Length: 4371 Tyson Signs Agreement To Sell Gorges/Quik-To-Fix Plants (10/21/96)

Tyson News
Tyson Corporate Site
PeopleProductsAboutTysonNewsEmailIndex

 

www.tyson.com

 

TYSON SIGNS DEFINITIVE AGREEMENT TO SELL GORGES/QUIK-TO-FIX PLANTS


Company Exits Beef Business to Concentrate on Chicken

Springdale, AR (October 21, 1996) - Tyson Foods, Inc. (NASDAQ:TYSNA), announced today that it has signed a definitive purchase agreement to sell Tyson's Gorges/Quik-To-Fix beef processing plants to an entity formed by the existing senior management of the Gorges/Quik-To-Fix Division and their financial partner, Cravey, Green & Wahlen, Inc. ("CGW"). The four plants involved in the sale are located in Iowa and Texas.

The decision to sell the balance of the red meat division was first announced in April, at about the time Tyson unveiled its new "We're Chicken" retail advertising campaign. This is the second step in a planned move away from red meat processing that began last year when Tyson sold its pork processing plant in Marshall, Missouri to Cargill, Inc.

"We are pleased to have reached an agreement with CGW on the sale of this business that will provide for continuity of management within the Gorges/Quik-To-Fix operations," said John Tyson, President of Tyson's Beef and Pork Division. "The 100+ years of experience of the Gorges/Quik-To-Fix management team, who will continue to run the business, and the financial resources of CGW will be a winning combination. This will allow them to focus on doing what they do best, the production and sale of further processed beef products, while Tyson concentrates on chicken."

The four plants involved in the sale are located in Orange City and Sioux Center, Iowa, and Garland and Harlingen, Texas. The plants produce a wide variety of further processed beef products and, combined, employ about 1,200 people. No significant changes in the day-to-day operations of the four plants is expected.

The transaction is expected to be completed by the end of November, subject to regulatory approvals and CGW consummating financing structured and arranged by NationsBank of Texas and NationsBanc Capital Markets. CGW is an Atlanta based firm specializing in management buyouts. No sale price or terms of the transaction are being announced.

    Contact:
    Ed Nicholson (501) 290-4591
    Corporate Public Relations Manager
    email: nicholsone@tyson.com