(Bloomberg) -- Tyson Foods Inc. agreed to sell a chicken facility to House of Raeford Farms Inc. as part of efforts to restore profitability.
Raeford Farms, a family-owned meat producer, plans to keep processing chicken at the Georgia plant with the existing workforce and grower network, Tyson said. Tyson will service customer orders from other locations, the company said without providing further details.
With the move, Tyson shows it is seeking to further streamline its chicken operation even after shutting down six plants and cutting thousands of jobs last year amid an industry downturn that sent its earnings plunging. While profits have improved this year with higher meat prices and lower feed costs, the unit’s margins are still trailing levels seen at US rival Pilgrim’s Pride Corp.
Tyson didn’t disclose the terms of the deal, which is pending conditions, including regulator approval. The company releases results for fiscal third quarter on Aug. 5.
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