Tyson Foods Inc. of Springdale (NYSE: TSN) has announced an agreement to acquire to Williams Sausage Co. Inc. of Union City, Tennessee.
Terms of the deal were not disclosed.
Family-owned Williams employs about 500 people. It provides fresh and fully cooked sausage, bacon and sandwiches to more than 4,000 retail outlets and foodservice customers across 20 states.
Stewart Glendinning, Tyson's president of prepared foods, said the acquisition "aligns with our strategic intent of expanding our capacity to serve our customers."
Williams was founded in 1958 by Harold Williams. The company announced a $37 million expansion in 2017 that included the construction of a new 200,000-SF production facility, distribution center, truck maintenance shop and corporate office.
“There are not many companies to which we could entrust what we have built, and we are very pleased that in Tyson Foods we have found that partner who understands the heritage and culture of our family business and will be able to take it to the next level. We believe this to be a very positive move for our family and our team members that will ensure the future of all stakeholders," Roger Williams, the company's CEO and the son of its founder, said in a news release.
Tyson Foods' profit plummeted 71% in the fourth quarter to $316 million on falling prices for beef products, an oversupply of chicken and lower sales in its pork segment.
The company's prepared foods segment was the only segment that didn't post an operating loss in the quarter.