The world's leading meat processor,
Tyson Foods Inc.
), is geared to strengthen its foothold in Mexican cuisine by
buying assets of California-based Circle Foods LLC from Claridge,
from Claridge Inc., a Montreal-based private equity firm.
Private equity firm Claridge has investments and equity stakes
in real estate, entertainment industries and food
businesses as Plats Du Chef of Montreal and La Terra Fina of
California. The financial terms of the deal finalized on Jun
1have not been disclosed.
Tyson does not plan any operational changes in Circle Foods
and intends to keep its management team intact.
The acquisition is of great benefit to Tyson Foods as it is
presently putting great focus into expanding its Mexican food
offerings. It will add the popular brands to Tyson's portfolio.
Circle Foods owns popular brands like Nuevo Grille and
Tortillaland handheld Mexican products, Tortillaland uncooked
tortillas and ROTILAND Indian flatbreads. It also produces
private brands for several customers.
It also will add a Circle Foods' state-of-the-art facility
plant in San Diego, which is known for its strong food safety
management system. The plant hproduces burritos, enchiladas,
chimichangas, tacos, quesadillas and tamales, as well as
tortillas and Indian flat breads.
Tyson's focus on Mexican food as is also evident from its
strategic acquisition of the Mexican snacks and tortilla
producer, Don Julio Foods of Clearfield, Utah in Apr 2013.
Tyson Foods' focus on Mexican food comes at a time when
Mexican food is becoming increasingly popular in the U.S., with
more and more Mexican-inspired cuisines being offered by
fast-casual and quick-service operators. Companies like Taco
Chuy's Holdings Inc.
Chiptole Mexican Grill Inc.
Yum! Brands Inc
) are popular restaurants offering Mexican delicacies in the
Tyson's endeavor to adapt to the changing demand of
low-calorie protein foods is encouraging. In Jan 2013, Tyson
joined forces with healthy and low-calorie food specialist,
Hungry Girl Lisa Lillien, to provide new variants of low-calorie
meals for calorie-conscious customers.
It also teamed up with a non-government organization, Alliance
for a Healthier Generation, to provide affordable and easily
available food products to school children which adhere to
federal nutrition standards.
Tyson currently holds a short-term Zacks Rank #3 (Hold).
CHUYS HOLDINGS (CHUY): Free Stock Analysis
CHIPOTLE MEXICN (CMG): Free Stock Analysis
TYSON FOODS A (TSN): Free Stock Analysis
YUM! BRANDS INC (YUM): Free Stock Analysis
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