Poultry & Meat

Tyson Buys BRF Operations in Thailand, UK and Netherlands

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Tyson Foods has reached a definitive agreement to purchase the Thai and European assets of Sao Paulo, Brazil-headquartered BRF S.A. The deal builds on the company’s growth strategy to expand offerings of value-added protein in global markets.

190214 brf graphic01The $340 million acquisition includes four poultry processing plants in Thailand, one facility in the Netherlands and one plant in the United Kingdom. The transaction, which is subject to customary closing conditions, is expected to be finalized before the end of Tyson’s fiscal third quarter.

“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 Springdale, Arkansas, USA-headquartered 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 plants produce a wide range of frozen and non-frozen value-added raw and fully cooked poultry products including highly specialized cuts for retail and foodservice customers throughout Asia and other 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 Grabits, Hot ’N’ Kickin’Chicken, Speedy Pollo and the Sadia brand names, in addition to private labels.

“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 five years,” said Donnie King, Tyson’s international group president. “Increasing our international footprint with in-country operations and export capabilities will help us strategically access new markets and better serve the growing global demand for our value-added protein.”