Tyson Sells Circle Foods to Ajinomoto

Tyson Foods, Inc., Springdale, Ark., has agreed to sell its Circle Foods operations to Japanese food producer Ajinomoto Co. Inc., for an undisclosed sum, five years after acquiring it.

Tyson is working with the company’s U.S. subsidiary, Ajinomoto Windsor, on the transaction, Tyson said.

Circle Foods, San Diego, was founded in 1983 as a producer and distributor of flatbreads, tortillas and Mexican food products under brands such as TortillaLand, Nuevo Grille and Rotiland. The business will join Ajinomoto Windsor’s frozen food division once the transaction is complete. Ajinomoto Group operates several specialist units around the world.

“We anticipate this transaction to be completed this spring, and are working with Ajinomoto Windsor on a transition plan for operations,” Tyson said in a statement. “As part of this transaction, we will retain some elements and assets of our San Diego operations. Our primary focus will be to continue delivering results for our customers by producing high quality products.”

Another announcement from Tyson Foods shows the company is exploring the sale of its pizza crust business (TNT Crust).

“We’re focused on maximizing the full potential of our core business, and this divestiture will help pave the way for growth in our protein brands,” said Sally Grimes, group president, Prepared Foods. “We believe a potential buyer will see the value of the pizza crust business as a whole, including the TNT Crust brand, the facilities, and the talented team members, and will be able to focus on its future.”

The sale of TNT Crust includes the pizza crust business of partially baked crusts, flat breads and self-rising crusts as well as the company’s two manufacturing facilities in Green Bay, Wisconsin. The company will retain the tortilla production from the facilities that will be used in other parts of its business. Goldman Sachs is acting as Tyson Foods’ financial advisor on the sale.