Leading meat processor,
Tyson Foods Inc
), acquired the Warren, Mich.-based pizza maker, Bosco's Pizza
Company, on Jan 18, 2014. The terms of the deal remain
Bosco's started as a carry-out pizzeria in 1988 and is known
for its premium Original Bosco stuffed bread sticks. It also
prepares a variety of stuffed breadsticks and frozen pizzas. It
distributes its products to food service and retail customers in
the U.S. and Midwest.
The acquisition fits well with Tyson's strategy to grow its
presence in the prepared foods sector. The sector has performed
above the normalized range for several consecutive quarters.
Chicken nuggets, chicken sandwiches, wings, meatball sandwiches
and bone-in chicken have been witnessing growth for the past few
years due to a change in consumers' tastes.
Post acquisition, the pizza maker has become part of Tyson's
Prepared Foods division. Bosco's Pizza will continue to operate
under the current name and customer contacts will also remain the
same. Vice President Operations, and Vice President Sales and
Marketing of Bosco's Pizza will continue in their present
capacities. Founder Mark Artinian will function in an advisory
role in the company. Bosco's' employees have become Tyson's team
members after the takeover.
Apart from the Bosco acquisition Springdale, AR-based Tyson
has made several other acquisitions to bolster its presence in
the prepared foods segment. In 2013, it acquired California-based
Circle Foods LLC from Claridge Inc. and Don Julio Foods of
Clearfield, Utah, to strengthen its foothold in Mexican
Tyson Foods markets prepared food products to retail grocers,
food service distributors, restaurant operators and on-site food
service establishments such as schools, universities, corporate
cafeterias, hotel chains, healthcare facilities and the military.
Tyson has bright prospects by 2015 as management expects profit
to rise further. Lower corn prices and higher chicken supply
leading to a decline in chicken prices, is expected to boost
profits in the next two years.
Tyson has a Zacks Rank #3 (Hold). However, better-ranked
stocks in the retail sector include
Hormel Foods Corp.
Con Agra Foods Inc.
Green Mountain Coffee Roasters Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
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