USA – Tyson Foods, the world’s second-largest processor and marketer of chicken, beef and pork, is set to expand its presence in Tennessee with the acquisition of Williams Sausage Company.
The William Sausage company was founded in 1958 and produces cooked sausages, bacon, and sandwiches for the retail and food service markets.
According to the terms of the deal, the William Sausage employees who number about 500 are set to continue working at the facility with no planned job cuts from the acquisition.
The financial terms were not disclosed by either party and the transaction is still subject to approval by U.S. regulators.
Stewart Glendinning, group president, of prepared foods for Tyson Foods, said: “The addition of Williams Sausage Company aligns with our strategic intent of expanding our capacity to serve our customers.
In 2017 they opened a second facility in Union City, Tennessee, an investment that cost US$37M, creating about 226 job opportunities in the 5 year period that it has been operational.
“There are not many companies to which we could entrust what we have built, and we are very pleased that in Tyson Foods we have found that partner who understands the heritage and culture of our family business and will be able to take it to the next level,” said Williams Sausage President and CEO.
“We believe this to be a very positive move for our family and our team members that will ensure the future of all stakeholders.”
The deal comes shortly after Tyson Foods announced a Q1 68% slump in operating profit in the three months to 31 December.
Tyson also recently expanded its own Tennessee facility into which it invested more than US$20 million.
This money was used for the construction of a wellness centre, an independent roadway for transporting livestock to the facility and the expansion of the facility’s production capacity.
The expanded space provided a 20% increase in production capacity at the facility which currently employs more than 600 workers.
With more capacity added, the facility is now better equipped to continue meeting the increased demand for Tyson’s Foods’popular Jimmy Dean, Hillshire Farm and other category-leading products.