Tyson outlines plans after IBP merger
Tyson, the world's biggest chicken producer, has said it hopes to achieve annual savings of $200 million within three years thanks to the merger with red meat packer IBP. Costs will be slashed through the enlarged company's increased purchasing power and streamlined management infrastructure.
The $2.7 billion merger created the world's premier protein company, but it was overshadowed by an attempt by Tyson in March to back out of the deal, claiming it had been misled by IBP. Robert Peterson, IBP chairman and chief executive was forced to sue Tyson to ensure that they carried through their commitment to buy the company. A judge found in favour of IBP in June.
Now Tyson is putting a positive spin on the deal, emphasising the benefits of the union and forecasting earnings that will exceed analysts’ expectations. Dick Bond, IBP chief operating officer, has been named as group president of the red meat packing arm of the new company. Steve Hankins will be the chief financial officer while Les Baldredge will be the general counsel. Peterson will step down from management, but stay on as a member of Tyson's board of directors.
