Comprehensive M&A data with integrated detailed company information
Tyson takes a bite out of BRF
Posted on Thursday, 07 February 2019 13:21
Tyson Foods is snapping up the Thai and European operations of Brazil-based food company BRF for USD 340.00 million.
Subject to the usual raft of closing conditions and regulatory approvals, the transaction is expected to complete in the third quarter of 2019.
Tyson will acquire four of BRF’s processing facilities, as well as one facility in the UK and another in the Netherlands.
A deal is part of the buyer’s strategy to expand its protein-based operations globally, following its purchase of US-based packaged meat distributor Keystone Foods in November for USD 2.16 billion.
Headquartered in Sao Paulo, BRF is billed as one of the largest food companies in the world with more than 100,000 employees across 140 countries.
Its brands include Golden Foods, Chester and Banvit, and posted revenue of BRL 8.77 billion (USD 2.38 billion) for its third financial quarter in 2018, slightly up from BRL 8.73 billion from the same period of the previous year.
Through the purchase, Tyson gains access to the target’s live poultry processing facilities in Thailand, which are used to produce frozen and fully cooked chicken products for the Asian food market, as well as export markets such as the UK.
Donnie King, president of international for the buyer, said: “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.”
Tyson will also expand its portfolio through BRF’s facilities in the UK and Netherlands, which produce chicken products for retail and foodservice customers under the brands Grabits, Hot ‘N’ Kickin Chicken, Speedy Pollo, and Sadia, among others.
Established in 1935, the buyer claims to be the world’s second-largest processor of chicken, beef and pork.
Tyson has 121,000 employees and generated sales of USD 40.05 billion for the financial year ended 29th September 2018, up from USD 38.26 billion in the corresponding period of 2017.
According to Zephyr, the M&A database published by Bureau van Dijk, there were 179 deals targeting animal slaughtering and processing operators announced worldwide in 2018.
Mafrig Global Foods, in the largest of these, bought a minority stake in US-based National Beef Packing Company for USD 1.10 billion.
© Zephus Ltd