US meat giant Tyson Foods has acquired the assets of California-based Mexican food producer Circle Foods as it continues the expansion of its value-added product line.
Tyson purchased the assets of Circle, a producer of frozen and refrigerated hand-held Mexican foods, uncooked tortillas and Indian flatbreads, from US investment firm Claridge. Terms of the deal, which closed on June 1, were no disclosed.
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Circle Foods produces branded products. Lines include Nuevo Grille, Rotiland and Tortillaland. It also produces private label products for various customers. The company operates a facility in San Diego and employs around 600 staff.
Tyson said it has no plans for any “significant” operational changes and intends to keep the existing Circle Foods management and production team in place to grow the business.
“Claridge and the Circle Foods team have developed an outstanding portfolio of products and customers, with a fantastic plant and workforce, and will be an excellent fit within our branded consumer products group,” said Donnie Smith, president and CEO of Tyson Foods. “We believe Tyson’s robust sales structure, as well as our frozen and refrigerated foods distribution system, will enable this business to accelerate its growth.”
This is the second acquisition for Tyson Foods this year. In February, it acquired local tortilla, salty snack and pretzel maker Don Julio Foods.
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By GlobalDataThe company has been looking to accelerate growth in value-added poultry, prepared foods and in its international business to drive sales over the next three years.
Early last month the US meat giant booked a drop in second-quarter earnings after the group saw a deterioration in its beef margins. Sales, however, were up year-on-year.
