Tyson Foods to buy American Proteins' poultry assets for $850 mn
16 May 2018
Tyson Foods Inc, the largest US meat processor, yesterday struck a deal to buy the poultry rendering and blending assets of American Proteins Inc for about $850 million, in order to expand its presence in the growing animal feed ingredient business.
The acquisition includes four rendering plants located in Georgia and Alabama and 13 blending facilities located throughout Southeastern and Midwestern states.The facilities are expected to provide additional capacity to Tyson’s current animal by-products business.
Most of the 700 people working for American Proteins are expected to be transferred to Tyson Foods.
Rendering is a process of using animal by-products for the production of tallow, grease and feed for animals and aquaculture.
Tyson said it expects its new business to generate adjusted net sales of more than $550 million over the next year.
“Rendering plays a key role in growing our business and helping us deliver on our sustainability goals,” says Tom Hayes, president and CEO of Tyson Foods. “Through this important business, no part of the animal goes to waste, and we can recycle valuable ingredients into feed for pets and aquaculture.”
Rendering is an environmentally friendlier way to keep animal products out of landfills and potentially reduce greenhouse gas emissions. According to the National Renderers Association, rendering’s contribution to carbon emission reduction in the US and Canada is equivalent to removing more than 12 million cars from the road annually.
“This acquisition is a great complement to our existing business, gives us the ability to render raw materials in a region we don’t currently serve, and better positions us to meet the competitive, fast-growing national and global demand for animal protein,” said Doug Ramsey, group president of poultry for Tyson Foods.
Mark Ham, president and CEO of American Proteins said, “We value and appreciate our 700 plus employees as well as the relationships we have with our suppliers and customers, and are confident that after the transaction closes the Tyson team will offer them the same commitment to service and quality as provided by American Proteins.”
Founded in 1935 by John Tyson, Springdale, Arkansas-based Tyson Foods is one of the world’s largest food companies.
The company has a broad portfolio of products and brands like Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp and State Fair.
It supplies retail and food service customers throughout the US and around 115 countries, and has annual sales of $38 billion.