Tyson Foods to acquire part of Brazil Foods, expand global operations
(TALK BUSINESS & POLITICS)Tyson Foods on Thursday (Feb. 7) announced the pending acquisition of the Thai and European operations of Brazil Foods for $340 million. The deal will expand Tyson’s global footprint and include four processing facilities in Thailand, a processing facility in the Netherlands and in the United Kingdom.
This deal with BRF S.A. is expected to close by the third quarter and is part of the company’s strategy to expand its product offerings of value-added (higher margin) protein in global markets.
CEO Noel White said some of the biggest growth opportunities in protein are in international markets. He said the acquisition of the integrated BRF facilities will help complement and strengthen Tyson’s presence in Thailand, and provide new capabilities in Europe. White said almost of the Brazil Foods products are higher margin, and there is little commodity chicken exposure.
Tyson said the Thailand operations are fulling integrated with feed mill, hatchery, breeder and grower farms and four processing facilities. The plants produce fresh and frozen chicken, raw and fully-cooked poultry products for retail and foodservice customers in 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 European retail and foodservice customers.
Read more at Talk Business & Politics.