(Adds details, outlook, shares)
July 28 (Reuters) - Tyson Foods Inc, the biggest U.S. meat processor, said it would sell its Mexican and Brazilian poultry businesses to JBS SA, the world's No. 1 meat producer, for $575 million.
Tyson also reported a 4.4 percent increase in third-quarter profit and forecast sales for fiscal year ending September 2015 above the average analyst estimate.
The company said it would use proceeds from the sale to pay down debt associated with its $7.7 billion acquisition of Hillshire Brands Co, which is expected to close in the current quarter.
"Although these are good businesses with great team members, we haven't had the necessary scale to gain leading share positions in these markets," Chief Executive Donnie Smith said in a statement.
Tyson had outbid Pilgrim's Pride, which is majority owned by JBS, with its $63 per share offer for Hillshire in June that valued the maker of Jimmy Dean sausages at $8.7 billion including debt.
Tyson said on Friday it was discontinuing operations at three of its factories which make processed meat products such as sausages and hot dogs.
Tyson on Monday reported net income attributable to the company of $260 million, or 73 cents per share, in the third quarter ended June 28. Excluding items, Tyson earned 75 cents per share.
Revenue rose 10.9 percent to $9.68 billion from $8.73 billion, helped by higher demand for chicken and pork products.
Analysts on average had expected the company to post a profit of 78 cents per share on revenue of $9.47 billion.
The company said it expects 2015 net sales of $42 billion, above the average analyst estimate of $38.75 billion, according to Thomson Reuters I/B/E/S.
Tyson's shares were slightly up in premarket trading on Monday after closing at $39.54 on the New York Stock Exchange on Friday.
(Reporting by Lisa Baertlein in Los Angeles and Shailaja Sharma in Bangalore; Editing by Maju Samuel and Saumyadeb Chakrabarty)