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Tyson Foods Inc. has lost its appetite...

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Reuters

Tyson Foods Inc. has lost its appetite for some of the specialty foods it picked up in its $3.2-billion purchase of giant meat packer IBP and is shopping those brands to prospective buyers, industry sources said.

The business for sale--Specialty Brands Inc., based in Ontario--sells frozen food products to food-service industry customers such as hotels and restaurants, the sources said. Included in the sale are such diverse brands as Butcher Boy meats, Jose Ole and Posada Mexican foods, Rotanelli frozen filled pastas and Fred’s appetizers, such as frozen meatballs and snacks.

The assets may be worth $100million to $200 million, with annual revenue of roughly $300 million, but they have not been strong profit drivers for IBP, the sources said.

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Tyson shares closed down 8 cents to $12.91 on the NYSE.

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