Tyson Foods to Acquire Thai and European Operations from BRF S.A.
02/07/2019 | 02:07am EDT
SPRINGDALE, Ark., Feb. 06, 2019 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. (NYSE: TSN) today announced a definitive agreement to acquire the Thai and European operations of BRF S.A. The $340 million (USD) purchase includes four processing facilities in Thailand, one processing facility in the Netherlands and one processing facility in the United Kingdom. This deal builds on the company’s growth strategy to expand offerings of value-added protein in global markets.
“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,” said Noel White, president and CEO of Tyson Foods. “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.”
The vertically integrated poultry operations in Thailand include a feed mill, hatchery, breeder farms and contract growing operations supplying live birds for the four poultry processing facilities. These four plants produce a wide range of fresh and frozen, value-added raw and fully cooked poultry products including highly specialized cuts for retail and foodservice customers throughout Asia and other export markets, including Europe.
The processing locations in the Netherlands and the United Kingdom are supported by in-house innovation capabilities for developing further-processed chicken products for retail and foodservice customers throughout Europe. Products are sold under GrabitsTM, Hot ‘N’ Kickin’Chicken®, Speedy Pollo® and the Sadia® brands, in addition to key customer-owned brands.
“It’s estimated that approximately 90 percent of global protein consumption growth will occur outside the United States, with 60 percent of the volume growth coming from Asia over the next 5 years,” said Donnie King, group president of International for Tyson Foods. “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.”
Terms and Conditions Additional terms of the deal are not being disclosed. The transaction is expected to close before the end of the company’s fiscal third quarter. It is subject to customary closing conditions, including regulatory approvals.
BofA Merrill Lynch is acting as exclusive financial adviser to Tyson Foods on the acquisition, and Clifford Chance LLP is acting as its legal counsel for the transaction. Cautionary Statement Regarding Forward-Looking Statements This communication contains forward-looking statements, including statements regarding expected growth in protein consumption and the expected consummation of the acquisition of the BRF operations and assets described above, which involve a number of risks and uncertainties, including the satisfaction of closing conditions for the acquisition (such as regulatory approval for the transaction); the possibility that some or all of the transaction will not be completed; customer and consumer preferences; the impact of general economic, industry, market or political conditions; the effects of any business combination with existing Tyson Foods operations, including on the combined operations’ future financial condition and performance, operating results, strategy and plans. These statements constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words “will,” “should,” “estimate,” “expect,” “intend,” “believe” and other similar expressions (or the negative of such terms) are intended to identify forward-looking statements. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results and the timing of events may differ materially from the results and/or timing discussed in the forward-looking statements, and readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date of this communication, and Tyson Foods does not undertake any obligation to update any forward-looking statement except as required by law.
About Tyson Foods Tyson Foods, Inc. (NYSE: TSN) is one of the world’s largest food companies and a recognized leader in protein. Founded in 1935 by John W. Tyson and grown under three generations of family leadership, the company has a broad portfolio of products and brands like Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State Fair®. Tyson Foods innovates continually to make protein more sustainable, tailor food for everywhere it’s available and raise the world’s expectations for how much good food can do. Headquartered in Springdale, Arkansas, the company had 121,000 team members at September 29, 2018. Through its Core Values, Tyson Foods strives to operate with integrity, create value for its shareholders, customers, communities and team members and serve as a steward of the animals, land and environment entrusted to it. Visit www.tysonfoods.com