News Summary
In a strategic move to enhance its financial position, Tyson Foods has announced the sale of four cold storage warehouses to Lineage Inc. for $247 million. Located across various states, the warehouses total approximately 49 million cubic feet of storage space, facilitating a workforce transition of about 1,000 employees to Lineage. This divestiture aligns with Tyson’s commitment to operational excellence and is coupled with a positive fiscal report projecting significant income and cash flow for the upcoming fiscal year.
Springdale, Arkansas – Tyson Foods Inc., a leading player in the food production industry and publicly traded under the ticker symbol NYSE: TSN, has announced plans to sell four of its cold storage warehouses to Lineage Inc. in a transaction valued at $247 million. This strategic move is part of Tyson’s ongoing efforts to bolster its operational excellence and strengthen its financial position.
The warehouses included in this deal are located in Pottsville, Pennsylvania; Olathe, Kansas; Rochelle, Illinois; and Tolleson, Arizona. Collectively, these facilities encompass about 49 million cubic feet of cold storage space. As a result of this acquisition, approximately 1,000 employees from Tyson Foods will transition to Lineage, which is based in Novi, Michigan and operates as a real estate investment trust.
This sale was announced alongside Tyson Foods’ fiscal report highlighting solid performance in sales and operating income across its various business segments, which include beef, pork, chicken, and prepared foods. Donnie King, the President and CEO of Tyson Foods, emphasized the company’s commitment to enhancing its financial strength while achieving operational excellence.
Looking ahead, the USDA forecasts a modest 1% increase in domestic protein production driven primarily by the beef, pork, chicken, and turkey sectors. For fiscal 2025, Tyson Foods anticipates an adjusted operating income ranging between $1.9 billion and $2.3 billion, with capital expenditures projected between $1.0 billion and $1.2 billion. The company also expects to generate a free cash flow of $1.0 billion to $1.6 billion in the same period.
The anticipated adjusted effective tax rate for fiscal 2025 is approximated at 25%, reflecting a cautious approach to some of the market’s challenges and uncertainties. Tyson Foods, which has been operational since 1935, employs around 138,000 people as of September 28, 2024, and boasts a wide array of recognized brands within the food and beverage sector.
This divestiture marks a significant step for Tyson Foods as it seeks to streamline its operations and focus on core business areas while ensuring that their workforce is transitioned effectively into the new ownership under Lineage Inc.
In conclusion, this transaction is indicative of a changing landscape within the food production and storage industry, where operational efficiency and financial performance remain crucial for sustaining growth and competitiveness.
Deeper Dive: News & Info About This Topic
HERE Resources
Lineage Inc. Reports Strong Q1 2025 Results and Expansion Plans
Additional Resources
- Tyson Foods Q2 2025 Results
- Arkansas Business: Tyson Foods Q2 Earnings Drop
- NWA Online: Fourth Generation Tysons
- Wikipedia: Tyson Foods
- Google Search: Tyson Foods Sale of Cold Storage Warehouses
Author: STAFF HERE NOVI WRITER
NOVI STAFF WRITER The NOVI STAFF WRITER represents the experienced team at HERENovi.com, your go-to source for actionable local news and information in Novi, Oakland County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Motor City Comic Con, Michigan State Fair, and Novi Home and Garden Show. Our coverage extends to key organizations like the Novi Chamber of Commerce and Novi Community Foundation, plus leading businesses in automotive, technology, and manufacturing that power the local economy such as Gentherm, Stoneridge, and Daifuku North America. As part of the broader HERE network, including HEREDetroitMI.com, HEREGrandRapids.com, HERENorthville.com, and HEREPlymouth.com, we provide comprehensive, credible insights into Michigan's dynamic landscape.