WSMP to Acquire Core Business of Tyson's Pierre Foods

Tyson Foods, Inc. (Springdale, Ark.) and WSMP Inc. (Claremont, N.C.) have signed a letter of intent for WSMP, in conjunction with certain members of the current Pierre management team, to acquire the core business of Pierre Foods from Tyson.

Pierre Foods, located in Cincinnati, Ohio, previously owned by Hudson Foods, was part of Tyson's recently completed Hudson acquisition. While other facilities in Hudson's Specialty Foods Division have also produced Pierre Foods products, the Cincinnati plant is the only facility being sold in this transaction.

The Pierre Foods business consists primarily of red meat based, pre-cooked sandwiches and other fully cooked, packaged food products.

Tyson will retain the bulk of the chicken based products produced by Hudson's Specialty Foods Division, and anticipates production of these items at the Caryville, Tenn. plant and other existing plants as part of the Hudson assimilation process.

Leland Tollett, chairman and CEO of Tyson Foods, stated that, "The divestiture of the Pierre Foods business segment of the Hudson acquisition, although not originally anticipated, is conducive to Tyson's efforts to concentrate attention on our core chicken business."

WSMP is comprised of a variety of prepared foods operations, and a restaurant division that operates more than 100 steakhouse type restaurants, primarily in the southeastern United States.

Tyson Foods is a leading producer, processor and marketer of chicken and other poultry-based food products, as well as other convenience food items.

Edited by Pam Ahlberg