US meat heavyweight Tyson Foods is to sell its pizza crust business to an affiliate of private equity firm Peak Rock Capital.
Terms were not disclosed.
The deal fits in with Tyson’s stated strategy of focus on protein.
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.
The 400+ team members employed at two manufacturing facilities in Green Bay, Wisconsin, are expected to continue with the company under the new owner.
Sally Grimes, group president, prepared foods, at Tyson said: “TNT Crust is a solid business supported by a great team, however, our strategy is focused on expanding Tyson Foods’ leadership position in protein.
“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 already started divesting other bakery operations. It recently completed the sale of its Sara Lee Frozen Bakery and Van’s businesses to private equity firm Kohlberg & Company.
The meat giant has been pursuing acquisitions which would boost its protein output. In June, Tyson bought organic chicken firm Tecumseh Poultry and it has been linked with a deal to buy Keystone Foods from Brazilian peer Marfrig.