Tyson Foods plans to sell China poultry business, sources say
- Tyson Foods said it is evaluating all operations and closing four more US chicken plants to reduce costs after its third-quarter earnings missed estimates
- The US meat and processed food maker has appointed Goldman Sachs to advise on the sale and has sent preliminary information to potential buyers
US meat and processed food maker Tyson Foods plans to sell its China poultry business, three people with knowledge of the matter said, in the latest case of a multinational firm looking to divest from the country in recent years.
The company has hired Goldman Sachs to advise on the sale and sent preliminary information to potential buyers including a number of private equity firms, said two of the people, adding the sale process was at an early stage.
While it was not immediately clear what valuation Tyson Foods is seeking for the China poultry business, it has annual sales of about US$1.1 billion, one of the people said.
Springdale, Arkansas-based Tyson Foods and Goldman Sachs declined to comment. The sources, who did not say why Tyson was planning to sell the business, declined to be identified because the information was confidential.
Calls to Tyson Foods’ China headquarters in Shanghai went unanswered.