Tyson To Sell Chicken Operations In Mexico, Brasil To JBS SA For $575 Million

Tyson Foods TSN signed a definitive agreement Monday to sell its poultry operations in Mexico and Brazil for $575 million in cash to JBS SA JBSAY.

Tyson traded recently at $41.31, up 4.4 percent.

Tyson expects the deal to close by the end of 2014, subject to regulatory approval.

Proceeds will pay down debt from Tyson's $7.7 billion acquisition of Hillshire Brands, agreed to earlier this month.

The Mexican business will be acquired through Pilgrim's Pride, whose majority owner is JBS, and which earlier this month lost a bidding war with Tyson to acquire Hillshire Brands.

The Brazilian business is to be acquired through JBS Foods, also a unit of JBS SA.

Tyson, which earlier Monday posted earnings of $0.78 per share, a nickel below forecasts, said the operations to be sold aren't large enough to gain a leading market share in their markets.

Tyson plans to expand its poultry operations in Asia, which include three plants in China and majority ownership of two poultry plants in India.