It has reached an agreement to sell its pizza crust business to an affiliate of private equity firm Peak Rock Capital. Terms have not been disclosed although the two companies hope to complete the deal in September.
The sale includes TNT Crust, a business founded in 1981 that produces partially-baked and self-rising pizza crusts for frozen pizza manufacturers and foodservice customers. More than 400 team members employed at two manufacturing facilities in Green Bay, Wisconsin, are expected to continue with the company under the new owner.
“TNT Crust is a solid business supported by a great team, however, our strategy is focused on expanding Tyson Foods’ leadership position in protein,” said Sally Grimes, group president of prepared foods. “We’re pleased Peak Rock Capital plans to continue operating the business and provide continued opportunities for the workforce. We intend to work closely with them to ensure a smooth ownership transition for everyone, including our team members and customers.”
Tyson Foods has been on a drive to divest bakery operations. It recently completed the sale of its Sara Lee Frozen Bakery and Van’s businesses to private equity firm Kohlberg & Company. When these sales were announced back in June, the business said it was “focused on expanding Tyson Foods’ leadership position in protein”.
In its recent third quarter results, Tyson reported an earnings rise of 21% to $541m from $447m in the third quarter of 2017.