Tyson Foods to divest Sara Lee Frozen Bakery and Van’s businesses

US-based meat producer Tyson Foods has signed an agreement to sell its Sara Lee Frozen Bakery and Van’s businesses to New York-based private equity firm Kohlberg.

Financial details of the transaction have not been disclosed by either of the two companies.

Tyson Foods has agreed to divest its Chef Pierre, Bistro Collection and Van’s brands as part of the arrangement, as well as license the use of the Sara Lee brand in certain channels.

Additionally, the deal includes the sale of the company’s prepared foods facilities in Tarboro, North Carolina, and Traverse City, Michigan, along with a sales office in Canada.

Tyson Foods Prepared Foods group president Sally Grimes said: “These are great assets with outstanding team members; however, we’re focused on expanding Tyson Foods’ leadership position in the protein.

“We believe these brands and facilities will do well as part of Kohlberg, which has extensive experience buying and growing businesses.”

Tyson Foods noted that the 1,160 team members working at the two facilities and sales office are expected to keep their positions with the new firm.

Kohlberg is partnering with C J Fraleigh for the transaction, who will join the company as executive chairman upon completion of the deal.

Fraleigh previously served as CEO of Sara Lee North America.

Fraleigh said: “I’m very excited to be joining the team. With established and iconic brands, including Sara Lee, Chef Pierre, Bistro Collection and Van’s, this business is well-positioned to continue its historical growth trajectory.

“I look forward to working with the company’s employees to execute on growth opportunities we’ve identified and continue providing customers with excellent service, innovation and consistently high-quality products.”

Rothschild & Co is serving as financial advisor to Tyson Foods for the deal.