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Tyson Foods to acquire poultry rendering and blending assets from American Proteins and AMPRO
Posted on Tuesday, 15 May 2018 14:51
Certain subsidiaries of Tyson Foods have agreed to purchase the poultry rendering and blending operations of American Proteins and AMPRO Products for a price of around USD 850.00 million.
The business expects the acquisition to further its recycling capabilities in the animal products for feed, pet food and aquacultural needs, among other things.
Operations to be included in the transaction are four rendering plants located in Georgia and Alabama and 13 blending facilities in the South East and the Midwest.
American Proteins has about 700 employees, most of which will transfer to Tyson Food upon closing, which remains subject to regulatory approvals.
The businesses being picked up are projected to generate net sales of USD 550.00 million over the next 12 months and Tyson Foods expects to realise synergies driven by manufacturing efficiencies, mix optimisation and distribution network consolidation.
Chief executive of the buyer Tom Hayes noted: “Rendering plays a key role in growing our business and helping us deliver on our sustainability goals.
“Through this important business, no part of the animal goes to waste, and we can recycle valuable ingredients into feed for pets and aquaculture.”
In addition, Tyson Foods recently announced plans to reduce greenhouse emissions by 30.0 per cent before 2030, including a commitment to support improved environmental practices on 2.00 million acres of corn by the end of 2020.
The buyer, which acquired AdvancePierre Foods Holdings for USD 4.20 billion last year, is billed as one of the world’s largest food companies and a recognised leader in protein.
With brands such as Jimmy Deam, Hillshire Farm and Ball Park under its belt, Tyson Foods generated annual sales of USD 38.30 billion in 2017.
Mergers and acquisitions in the food manufacturing industry have been popular worldwide this year with 581 such deals announced since the start of 2018, according to Zephyr, the M&A database published by Bureau van Dijk.
Blue Buffalo Pet Products, Frutarom Industries, Nestle SA's confectionery business in the US and Ainsworth Pet Nutrition, among others, have all featured in transactions.
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