Tyson Acquires Maker of Mexican Food

Springdale, Ark.-based Tyson Foods (NYSE: TSN  ) is going west for its latest acquisition.

On Monday, the chicken conglomerate announced that it has acquired from Claridge the assets of California-based Circle Foods, LLC, a producer of frozen and refrigerated handheld Mexican foods under the brand names Nuevo Grille and Tortillaland, uncooked Tortillaland tortillas, and also Rotiland-brand Indian flatbreads. The company also has a private-label business through which it produces foods for third-party customers.

The acquisition brings with it a 159,000-square-foot production facility in San Diego, and adds 600 Circle Foods employees to Tyson's current workforce of 115,000. Tyson says the acquisition closed on June 1, but it did not disclose the purchase price. Claridge is an investment firm headquartered in Montreal, Quebec.

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  • Report this Comment On June 03, 2013, at 1:53 PM, EllenBrandtPhD wrote:

    No comments from analysts yet on Tyson's acquisition of Circle. But I would bet they'd be very positive and say it is strongly accretive rather than otherwise.

    Circle's products not only tie in beautifully with Tyson's, but it is also only regionally based so far, even, it seems, within a couple of national chains. That means the possibilities for growth here are utterly fabulous.

    And if one is looking at Smithfield and its effect on Tyson's valuation going forward, this makes it even higher - yet another in a whole series of TSN moves from commodity producer to high-value-added Growth company.

    The analysts already love Tyson. Here's an additional excuse for them to come out with new commentary and raised Targets. Let's see if we get some over the next few days.

    (I believe we will! And the MMs are STILL coddling the Shorts in an almost all-institutional stock. I NEVER understand that.)

  • Report this Comment On June 05, 2013, at 10:13 AM, EllenBrandtPhD wrote:

    Comment to Zack's, in case anyone there scans the Fool:

    You write a GLOWING little note on the Circle acquisition, after which you keep TSN on Hold, despite nearly the entire rest of the analyst community going against you?

    This is supposed to make logical sense to someone?

    We all KNOW Somebody or Other powerful made a big mistake by increasing a TSN Short position at exactly the moment they should have been doing the opposite.

    But since everyone and his/her/its sixth cousin from Peoria knows about this mistake, time for the Seller to bite the bullet and change direction. TIA.

    .

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