Power move: Tyson Foods divests pizza crust business to focus on protein

By Gill Hyslop

- Last updated on GMT

Tyson Foods is offloading its pizza crust business to focus on building its leadership position in protein. Pic: ©GettyImages/giuseppepapa
Tyson Foods is offloading its pizza crust business to focus on building its leadership position in protein. Pic: ©GettyImages/giuseppepapa

Related tags Tyson foods Pizza Bakery industry Private equity firm

Tyson Foods has agreed to sell TNT Crust for an undisclosed amount to an affiliate of private equity firm Peak Rock Capital.

The Wisconsin-based TNT is a manufacturer and distributor of partially baked, self-rising, flat breads and other pizza crusts for the foodservice and retail channels.

The move follows Tyson Foods’ strategy to divest its bakery operations to focus on expanding its position in protein. The company recently completed the sale of its Sara Lee Frozen Bakery and Van’s businesses to private equity firm Kohlberg & Company.

“TNT Crust is a solid business supported by a great team, however, our strategy is focused on expanding Tyson Foods’ leadership position in protein,” ​said Sally Grimes, Group President, Prepared Foods.

Building a solid F&B portfolio

The deal is Peak Rock’s seventh recent food and beverage investment.

“This transaction is another example of Peak Rock's deep experience in executing complex carveout transactions,”​ said Anthony DiSimone, CEO of Peak Rock.

“It also highlights our continued interest in attractive investments in the food and beverage industry. We believe that TNT represents an excellent platform for growth and we will actively pursue both organic initiatives as well as accretive add-on acquisitions."

Other acquisitions in the F&B arena by Peak Rock include Gold Coast Bakeries, honey producer Sweet Harvest Foods, dairy-based snacks manufacturer Berner Food & Beverage, and Diamond Crystal Brands, which makes portion control and single-serve products.

Seamless transition

“TNT represents an exciting opportunity to invest in an industry leader within the large and growing pizza category. We look forward to completing a seamless transition of the business from Tyson to a standalone entity in the near-term,”​ added Robert Pistilli, MD of Peak Rock.

TNT’s 400+ strong staff complement employed at TNT’s two manufacturing facilities in Green Bay are expected to continue under the new owner.

The transaction is expected to close in September 2018, subject to customary closing conditions.

Goldman, Sachs & Co. is acting as Tyson Foods’ financial adviser on the sale.

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