Meat + Poultry - December 2015 - 10

BUSINESS NOTES

TYSON TO CLOSE TWO PLANTS
Springdale, Ark.-based Tyson Foods Inc. announced in late
November plans to close its prepared foods facilities in
Jefferson, Wis., and Chicago. Production at the plants will
cease Oct. 1, 2016, during the second half of the company's
fiscal year. Tyson said it will transfer production
from those plants to some of its other prepared foods
operations. Operations at the Jefferson plant focus on
production of pizza toppings and sliced pepperoni and
sausage for foodservice and retail customers. The plant
was part of Tyson's acquisition of IBP inc. in 2001. The
Chicago facility manufactures prepared foods for the
hospitality industry. Tyson acquired the Chicago plant in
1994 from a private owner.
The closures will affect approximately 880 employees,
including about 480 at the Chicago plant and about 400 at
Jefferson. No other facilities in Chicago are affected by
this announcement, the company said. Tyson attributed
the closures to its evolving product needs and the old age
of the plants, which would need costly renovations to
keep open. The distance of the Chicago plant from its raw
material supply also was a factor.
"We examined many options before we turned down
this road," said Donnie King, president of North American
operations. "This affects the lives of our team members
and their families, making it a very difficult decision. But
after long and careful consideration, we've determined we
can better serve our customers by shifting production and
equipment to more modern and efficient locations."

POPE TO LEAVE SMITHFIELD
C. Larry Pope, CEO of Smithfield Foods Inc., will retire
from the company effective Dec. 31 after a 35-year
career at Smithfield, the company
announced in November. Kenneth
Sullivan, president and COO, will
succeed Pope as CEO. 
Pope joined Smithfield Foods in
1980 as controller. He became CFO
in 1999. In 2001, he was promoted
to president and COO. Pope
succeeded Joseph Luter III as CEO
in 2006. Before joining Smithfield,
Pope spent four years with Coopers
Larry Pope
& Lybrand, a global accountancy
and consultancy firm that merged
with Price Waterhouse in 1998.
In a statement, Pope said the leadership change comes
at a time of "strength and growth for Smithfield."
"Since February, the Smithfield family has been hard at
work implementing our 'One Smithfield' initiative aimed
at solidifying the company's position as a global leader in

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branded packaged meats," he said. "During this time, we
have unified Smithfield and made the company stronger
and more efficient to better support our people, brands
and customers.
"We have also put in place the next generation of
leadership to ensure Smithfield's success long into the
future," he continued. "I am extremely pleased with what
we have achieved during my tenure as CEO and think the
future is even brighter with the management team that
we have put in place over the past two years. As such, I
believe now is the right time for me to retire and allow
this team to bring new excitement, energy, ideas and
perspectives to the company." 
Pope was at the helm of Smithfield throughout the
negotiations that saw China's Shuanghui International
acquire the company for approximately $4.7 billion in
2013.
Sullivan was named president and COO earlier this
year. He has held a number of positions within the
company including CFO from 2013 to 2015, vice president
of finance from 2010 to 2013 and chief accounting
officer from 2007 to 2010. Before joining Smithfield in
2003, Sullivan spent 12 years at large public accounting
and consulting firms serving a variety of clients in the
manufacturing, technology and government contracting
sectors.

CONAGRA ANNOUNCES LAMB WESTON SPINOFF
ConAgra Foods Inc., Omaha, Neb., plans to break into
two independent, publicly traded businesses. One will
be called ConAgra Brands to be made up of the ConAgra
Foods consumer brands business, and the other will be
called Lamb Weston and be comprised of ConAgra Foods'
frozen potato assets. 
"The decision to separate into two pure-play
companies reflects our ongoing commitment to
implementing bold changes in order to deliver sustainable
growth and enhanced shareholder value," said Sean
Connolly, president and CEO of ConAgra Foods.
"The separation will enable each company to sharpen
its strategic focus and provide flexibility to capitalize on
the unique growth opportunities in its respective market.
Shareholders will gain direct exposure to more focused
consumer and commercial foods businesses, each with
distinct customer bases and investment profiles."
The two businesses operate in distinct markets and
possess unique and compelling growth prospects and
investment requirements, according to the company.
A break up of the businesses will allow for greater
management focus on each business, increased flexibility,
tailored capital structures and financial policies, and the
ability for investors to value the two companies based on
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