In June 2016, OSI Group acquired the Chicago-based Tyson Foods plant for $7.4 million. Before the acquisition, Tyson Foods plant had announced that they could not guarantee the jobs of more than 480 employees. By the time of the acquisition, about 250 employees were working at the facility. Caroline Ahn, Tyson Foods spokeswoman, noted that Tyson Foods plant could not sustain the huge number of employees since their production capacity had gone down.
How OSI Group salvaged the situation
Tyson Foods plant and OSI have deep roots in Chicago. Both OSI and Tyson Foods plant have a lot in common, including the commitment to excellence and customer satisfaction. OSI seized the opportunity by acquiring Tyson Foods plant, which had an already established market for their best quality products in Chicago. Besides, the facility sits on a 200,000 square-foot of land which is in the same neighborhood with OSI’ other Chicago facilities. The acquisition of the Tyson Foods plant would provide additional infrastructure and offer additional support to the existing OSI food facilities.
One thing that has kept about OSI Group afloat for more than a century is their ability to adapt to the changing consumer needs. The acquisition of the Chicago-based facility was in line with its mission of expanding its capabilities to meet the changing consumer demands. The transaction was not only a game changer for OSI, but it also changed the lives of more than 480 employees who were about to lose their jobs. As part of the agreement, OSI Group agreed to retain most of the workers who continue to work at the facility.
Before the acquisition, Tyson Foods plant prepared meals that include meatballs, chicken, omelets, crepes, sauces, chicken cordon, and soups for the hospitality industry. OSI, however, did not disclose what they would process in the facility. Tyson Foods plant executives disclosed that they decided to give up the plant for acquisition due to its inability to meet the dynamic consumer demands. Two other food processing facilities owned by the company are still in operation.
About OSI Group
OSI is a private food company that makes a variety of value added meat products including bacon, breakfast sausage, hot dogs, meat patties, fish, and poultry products. The company has been around since 1909.