RECENT ACQUISITION

6 Months Ended

Jun. 28, 2015

Business Combinations [Abstract]

RECENT ACQUISITION

RECENT ACQUISITION

On July 28, 2014, the Company entered into a definitive agreement to purchase, indirectly through certain of its Mexican subsidiaries, 100% of the equity of Provemex Holding LLC and its subsidiaries (together, "Tyson Mexico") from Tyson Foods, Inc. and certain of its subsidiaries. On June 29, 2015, the Company completed its purchase of Tyson Mexico for approximately $400 million, subject to adjustment for closing date working capital, using available cash balances. Tyson Mexico is a vertically integrated poultry business based in Gomez Palacio, Durango, Mexico. It has a production capacity of three million birds per week in its three plants and employs more than 5,400 people in its plants, offices and seven distribution centers. The acquisition further strengthens the Company's strategic position in the Mexico chicken market. The Company expects to maintain these operations working to capacity with the existing workforce. The Company plans to keep all current labor contracts in place. The Company continues to evaluate the operational impact of Tyson Mexico. The allocation of the purchase price is incomplete, pending finalization of the assessments of the assets acquired and liabilities assumed. The financial information included in this quarterly report does not give effect to the Tyson Mexico acquisition.