Tyson Foods is branching further beyond the beef, pork and chicken for which it’s known, voyaging deeper into the prepared foods world by snapping up a Mexican food factory in San Diego.
The Springdale, Ark., giant bought Circle Foods, which employs 600 full-time workers at its Southern California facility, from Montreal investment firm Claridge Inc. The companies did not disclose financial terms of the deal, which was completed June 1.
Circle Foods has been in operation for 25 years. Its 159,000-square-foot facility was built in 2008 and produces refrigerated and frozen burritos, chimichangas, enchiladas, quesadillas, tacos and tamales. The site also churns out uncooked tortillas and Indian flatbreads.
Tyson said it doesn’t plan to make any major changes at the factory and will keep Circle’s managers in place.
The meat producer has been trying to boost its presence in packaged foods. Last month, executives told investors that new product development is key to the company’s growth.
"We must continue to provide product innovation to drive traffic and sales for our customers," said Chief Executive Donnie Smith at a news conference.
Continued Noel White, senior group vice president of fresh meats: "While being an efficient commodity protein producer is part of our business, it's not our ultimate goal, and it's not where our growth will come from.”
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