Tysoon Foods Inc., the biggest U.S. meat processor, said on Monday it would sell its Mexican and Brazilian poultry businesses to bigger global rival JBS SA's Pilgrim's Pride for 575 million dollars. 

Proceeds from the sale of Tyson's Mexico and Brazil poultry operations will be used to help pay down debt associated with its 7.7 billion dollars acquisition of Hillshire Brands Co, which is expected to close before Sept. 27.

In a press release, Pilgrim's Pride said that the Mexican transaction is valued at 400 million dollars and that it will be paid for in cash, pending regulatory approvals by the competent authorities. 

The company added that it anticipates incremental annual revenue of approximately $650 million as a result of the transaction. 

Tyson de México, a vertically integrated poultry business based in Gómez Palacio, Durango, has operated for more than 20 years. The company has three plants and seven distribution centers in Mexico with more than 5,400 employees.

Pilgrim's Pride said that it expects to maintain the operations working to capacity with the existing working force, maintaining labor contracts in place. 

"The Mexico and Brazil poultry operations being sold were good businesses for Tyson but lacked the necessary scale to gain leading share positions," Donnie Smith, president and CEO of Tyson Foods, said on a conference call with analysts.