The deal also includes the sale of Chef Pierre, Bistro Collection, and Van’s brands, and a licence to use the Sara Lee brand in certain channels.
On top of this, Tyson Foods' facilities in North Carolina and Michigan, as well as its sale office in Canada, are also included.
The move comes as part of Tyson’s latest efforts to sell its non-protein businesses so that it can focus on its core offerings such as beef and chicken.
“These are great assets with outstanding team members; however, we’re focused on expanding Tyson Foods’ leadership position in protein,” said Sally Grimes, Group President of Prepared Foods at Tyson.
“We believe these brands and facilities will do well as part of Kohlberg, which has extensive experience buying and growing businesses.”
Private equity firm Kohlberg & Co said that C.J Fraleigh, who previously served as CEO of Sara Lee North America, would serve as executive chairman.
“I’m very excited to be joining the team,” Fraleigh said.
“With established and iconic brands, including Sara Lee, Chef Pierre, Bistro Collection, and Van’s, this business is well-positioned to continue its historical growth trajectory.”