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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.
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