Tyson Foods has agreed to acquire the Thai and European operations of Brazilian meat giant BRF, in a deal worth around $340 million.
The acquisition will see Tyson acquire four poultry processing facilities in Thailand, one processing facility in the Netherlands and one processing facility in the United Kingdom.
The newly-acquired poultry operations in Thailand include a feed mill, hatchery, breeder farms and contract growing operations which supply birds to the four processing facilities. These four plants produce a wide range of fresh and frozen, value-added poultry products for retail and foodservice customers throughout Asia and other export markets such as Europe.
Meanwhile, the processing locations in the Netherlands and the United Kingdom process a wide range of poultry products, and both facilities are supported by in-house innovation capabilities to support and accelerate the development of new value-added processed poultry products.
Tyson claims that this deal builds on the company’s growth strategy to expand its value-added protein offerings in international markets.
As part of this strategy, Tyson acquired meat product manufacturer Keystone Foods from Marfrig, another Brazilian meat producer, for $2.16 billion in August 2018.
Noel White, president and CEO of Tyson Foods, said: “As noted when we acquired Keystone Foods on November 30, we believe some of our biggest growth opportunities are in value-added foods and international markets.
“In addition to domestic benefits, the Keystone acquisition provided us with a scalable production platform in the Asian poultry market.
“The acquisition of these BRF facilities will help complement and strengthen our presence in Thailand, and provide new capabilities in Europe, enhancing our ability to serve growing global demand for value-added protein.”
Donnie King, group president of International for Tyson Foods, said: “It’s estimated that approximately 90% of global protein consumption growth will occur outside the United States, with 60% of the volume growth coming from Asia over the next five years.
“Increasing our international footprint with in-country operations and export capabilities will help Tyson Foods strategically access new markets and better serve the growing global demand for our value-added protein.”
© FoodBev Media Ltd 2019
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